The pre-closing balances in the T-accounts of Hook M Horns Company at the end of the third year of operations, December 31, 2010, follow. The 2010 adjusting entries are identified by letters.

Required:
1. Develop three 2010 trial balances for Hook M Horns Company using the following format:

2. Write an explanation for each adjusting entry for 2010.
3. Record the closing journal entry.
4. What was the average income tax rate for 2010?
5. What was the average issue (sale) price per share of the capitalstock?

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Contributed Capital (8,000 shares) Cash Note Payable (8%) Bal. 20,000 Bal. 10,000 Bal 56,000 Interest Payable Maintenance Supplies Ba 500300 Service Equipment Retained Earnings (b) 800 Bal. 9,000 Income Taxes Payable Service Revenue Bal. 90,000 (f) 13,020 6,000 Bal. 220,000 Accumulated Depreciation, Service Equipment Wages payable Expenses Bal. 18,000 (d) 9,000 (e 500 Bal. 160,000 (a) 300 (b) 800 (d 9,000 (el 500 (c) 6,000 (f 13,020 Remaining Assets Unearned Revenue Ba. 42,500 Unadjusted Trial Balance Adjusted Trial Balance Post-Closing Trial Balance Account DebitCredit Deb CreditDebit Credit