Using adjusted trail balance prepared below:

1)

Jan's Studio

Trial balance (adjusted)

As at December 31, 2018

	Debit	Credit
Cash	5,000
Accounts receivable	5,500
Prepaid studio rent	1,000
Unexpired insurance	2,400
Supplies	1,200
Equipment	25,000
Accumulated depreciation, equipment		5,000
Notes payable		4,500
Accounts payable		1,500
Salaries payable		200
Income tax payable		160
Unearned studio revenue		1,800
Capital		26,000
Furniture	8,000
Studio revenue earned		12,400
Salary expense	2,500
Supplies expense	700
Rent expense	1,500
Insurance expense	400
Advertisment expense	300
Depreciation expense, equipment	2,500
Interest expense	350
Income tax expense	540
Dividend	1,230
Retained earnings	____	6,560
Totals	58,120	58,120

2) Closing entries at the end of the year (December 31, 2018) :

	Date	Account titles and explanation	Debit	Credit
1.	December 31, 2018	Service revenue	12,400
		Income summary		12,400
		[Service revenue balance transferred to income summary]
2.	December 31,2018	Income Summary	8,790
		Salary expense		2,500
		Supplies expense		700
		Rent expense		1,500
		Insurance expense		400
		Advertisment expense		300
		Depreciation expense, equipment		2,500
		Interest expense		350
		Income tax expense		540
		[Expenses balance are transferred to income summary]
3.	December 31, 2018	Income Summary [12,400 - 8,790]	3,610
		Retained earnings		3,610
		[Net income transferred to retained earnings]
4.	December 31, 2018	Retained earnings	1,230
		Dividend		1,230
		[Dividends paid]

3)

Jan's Studio

Post Closing Trial balance (after closing)

As at December 31, 2018

	Debit	Credit
Cash	5,000
Accounts receivable	5,500
Prepaid studio rent	1,000
Unexpired insurance	2,400
Supplies	1,200
Equipment	25,000
Accumulated depreciation, equipment		5,000
Notes payable		4,500
Accounts payable		1,500
Salaries payable		200
Income tax payable		160
Unearned studio revenue		1,800
Capital		26,000
Furniture	8,000
Retained earnings [6,560 + 3,610 - 1,230]	_____	8,940
Totals	48,100	48,100

1) Prepare an income statement

2) Prepare statement of retained earnings

[Answer completely and properly. Thumbs up will b send right after getting full and right answer. If can't answer completely then don't bother to answer]