Unadjusted trial balance of Thanos Merchandising Company is given below:

Thanos Merchandising Company

Unadjusted Trial Balance

December 13, 2019

Account Balance

Bank 234.000

Interest Payable 225.000

Bank Loan (5 years) 690.000

Notes Receivable 420.000

Service Revenue 1.350.000

Cost of Service 720.000

Office Supplies 27.000

Accumulated Depreciation (Building) 420.000

Equipment 330.000

Marketing Expense jQuery22409454984998943274_1600381896406??

Building 600.000

Depreciation Expense (Building) 90.000

Interest receivable 112.500

Note payable (3 years) 375.000

Cash 42.000

Profit from sale of equipment 9.000

Account Receivable 171.000

Capital 1.155.000

Utilities Expense 288.000

Accounts Payable 210.000

Bank Loan (1 year) 75.000

Rent Expense 157.500

Prepaid Rent 75.000

Interest Expense 72.000

Accumulated Depreciation (Equipment) 270.000

Service discount 37.500

Land 1.200.000

Depreciation Expense (Equipment) 240.000

Interest Revenue 75.000

Insurance Expense 52.500

Unearned Service Revenue 105.000

Thanos Merchandising Company was established on January 1, 2019. As of December 31, 2019, the following additional information is available:

1. $5.000 of Office Supplies has been used.

2. Accrued interest revenue is $10.000.

3. $15.000 of prepaid rent has expired as of December 31, 2019.

4. As of December 31, 2017, $20.000 of the Unearned Service Revenue is earned.

Required:

a. Find the Marketing Expense for the year of 2019 (Hint: Write all the accounts to debit or credit sides while considering their nature. The total of debit and credit sides should be equal.) (10 points)

b. Prepare and journalize the adjusting entries. (20 points)

c. Prepare the adjusted trial balance. (20 points)

d. Journalize the closing entries. (20 points)

e. Prepare Income Statement and Statement of Financial Position (Balance Sheet) of Thanos Service Company in proper form. (30 points)

ECONOMICS