Using the information provided in E4- 12: 

In E4- 12

MPS, Inc. has the following unadjusted account balances as of December 31, 2015, the company’s year- end: 

• Cash: $ 430,000 

• Accounts Receivable: $ 2,000 

• Prepaid Insurance: $ 14,000 

• Prepaid Rent: $ 22,000 

• Equipment: $ 60,000 

• Accumulated Depreciation— Equipment: $ 0 

• Accounts Payable: $ 10,000 

• Common Stock: $ 16,000 

• Sales Revenue: $ 823,100 

• Wage Expense: $ 290,400 

• Utilities Expense: $ 11,200 

* Exercises and problems that can be solved using Excel are indicated with the symbol, . .

• Insurance Expense: $ 8,500 

• Rent Expense: $ 11,000 

• Depreciation Expense— Equipment: $ 0 At year- end, MPS makes adjusting journal entries to properly record revenues and expenses. The following information applies to the adjusting journal entries: 

• The prepaid insurance balance relates to an insurance policy purchased on January 1, 2015, that covers the period of 1 / 1 / 15 – 12 / 31/ 15. 1 / 1 / 15 – 12 / 31 / 15.

• The prepaid rent balance relates to rent paid in June 2015 to cover the period of 7/ 1/ 15– 6/ 30/ 16.7 / 1 / 15 – 6 / 30 / 16. 

• Wages for 2015 in the amount of $ 26,000 will be paid after year- end and have not yet been recorded. 

• MPS purchased the equipment in the beginning of January 2015 and will depreciate it on a yearly basis. No depreciation has been recorded yet. The equipment has a useful life of 15 years, no residual value, and will be depreciated on a straight- line basis. 

Required 

a. Prepare the necessary closing entries for MPS, Inc. at December 31, 2015. 

b. Prepare the post- closing trial balance for MPS, Inc. at December 31, 2015.