TRAILS, INC. Adjusted Trial Balance December 31, 2018 Debit Credit $ 3,400 8,600 Cash . .. .. . . . .... . 4,200 Accounts receivable 930 Supplies . . . . . 66,000 Prepaid insurance. . Office equipment .... ... $ 11,000 Accumulated depreciation 2,100 Accounts payable . . . 10,000 Subscription liabilities . 3,500 Salaries payable. 25,000 Common stock . . . . 23,220 Retained earnings ... 168,300 Subscription revenue 49,700 Advertising revenue 100,230 Salaries expense . . ... 85,600 Printing and mailing expense. 8,800 Rent expense . . . 6, 100 Supplies expense . . 1,860 Insurance expense. 5,500 Depreciation expense. 1,600 Income tax expense $292,820 Totals . . $292,820 REQUIRED a. Prepare its income statement and statement of stockholders' equity for 2018, and its balance sheet at December 31, 2018. There were no cash dividends and no stock issuances or repur- chases during the year. b. Prepare entries to close its accounts in journal entry form.

d. Pre entries to the T-accounts P3-50. Preparing Financial Statements and Closing Entries year ending December 31, 2018, is: Trails, Inc., publishes magazines for skiers and hikers. The company's adjusted trial balance for the TRAILS, INC. Adjusted Trial Balance December 31, 2018 Debit Credit $ 3,400 8,600 4,200 930 66,000 Cash... Accounts receivable Supplies .. Prepaid insurance. Office equipment Accumulated depreciation Accounts payable Subscription liabilities. Salaries payable. Common stock Retained earnings Subscription revenue Advertising revenue Salaries expense Printing and mailing expense Rent expense Supplies expense Insurance expense. Depreciation expense. Income tax expense Totals $ 11,000 2,100 10,000 3,500 25,000 23,220 168,300 49,700 100,230 85,600 8,800 6,100 1,860 5,500 1,600 $292,820 $292,820 a. REQUIRED Prepare its income statement and statement of stockholders' equity for 2018, and its balance sheet at December 31, 2018. There were no cash dividends and no stock issuances or repur- chases during the year. b. Prepare entries to close its accounts in journal entry form