Use the following image below(ONLY IF NEEDED) to answer the following question

QUESTION:

Closing entries are unnecessary before preparing the income statement.

o True

o False

1. Force, Inc. has the following unadjusted trial balance at December 31, 2016: Credit Debit $ 15,000 $150,000 $220,000 $ 5.000 $360,000 Account Description Cash Accounts receivable Inventory Prepaid rent Property, plant & equipment Accumulated depreciation Accounts payable Salaries and wages payable Contributed capital Retained earnings Revenue Cost of goods sold Salaries and wages Depreciation expense Utility expense Rental expense Totals $ 60.000 $140.000 $ 5,000 $360,000 $ 50.000 $500.000 $300,000 $ 50,000 $ 15,000 $1,115,000 $1,115,000 a. Use the information below to prepare any adjusting entries at December 31, 2016: i. PP&E has an expected useful life of ten years, and an expected residual value of $60,000. ii. Prepaid rent expires December 31, 2016. iii. Earned and unpaid salaries and wages at December 31, 2016 are $20,000 i) Depreciation expense $30,000 Accumulated depreciation $30,000 ii) Rent expense Prepaid rent $ 5,000 $ 5,000 iii) Salaries and wage expense Salaries and wages payable $20,000 $20,000 b. Prepare an adjusted trial balance for Force Inc. as of December 31, 2016. Account Description Cash Accounts receivable Inentory Prepaid rent Property, plant & equipment Accumulated depreciation Accounts payable Salaries and wages payable Contributed capital Retained earnings Revenue Cost of goods sold Salaries and wages Depreciation expense Utility expense Debit Credit $ 15,000 $150,000 $220,000 $ 0 $360,000 $ 90,000 $140,000 $ 25,000 $360,000 S 50,000 $500,000 $300,000 $ 70,000 $ 30,000 $ 15,000 $ 5,000 $1,165,000 $1,165,000 Rent expense Totals c. Prepare the income statement for Force Inc. for the year ended December 31, 2016. Force Inc. Income Statement for the year ended December 31, 2016 Reveme Cost of goods sold Gross margin $500,000 $300,000 $200,000 Expenses: Salaries and wages Depreciation Utilities Rental Total expenses $70,000 $30,000 $15,000 $5.000 $120.000 Net Income $80,000 d. Prepare the closing entries for Force, Inc. for the year ended December 31, 2016. Revenue Cost of goods sold Salaries and wages expense Depreciation expense Utilities expense Rental expense Retained earnings $500,000 $300,000 $ 70,000 $ 30,000 $ 15,000 $ 5,000 S 80,000 e. Prepare the balance sheet for Force, Inc. as of December 31, 2016. Assets Cash Accounts receivable Inventory Property, plant & equipment Less accumulated depreciation Net property, plant & equipment Force, Inc. Balance Sheet As of December 31, 2016 Liabilities $15,000 Accounts payable $750,000 Salaries and wages payable $220,000 Total liabilities $360,000 ($90,000) Shareholders 'Equity $270,000 Contributed capital Retained earnings Total shareholders' equity $140,000 $25,000 $165,000 $360,000 $130,000 $490,000 Total assets $655,000 Total liabilities and shareholder's equity $655,000