As stated in its annual report, Unik Computer Corporation is an information technology company, developing and marketing hardware, software, solutions, and services. The following trial balance lists accounts that Unik uses. Assume that the balances are unadjusted at the end of the fiscal year ended December 31, 2015:

Required:

1. Based on the information in the unadjusted trial balance, list the deferred accounts that may need to be adjusted at December 31 and the related statement of earnings account in each case (no computations are necessary).

2. Based on the information in the unadjusted trial balance, list the accrual accounts that may need to be recorded at December 31 and the related statement of earnings account in each case (no computations are necessary).

3. Which accounts should be closed at the end of the year? Why?

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UNIK COMPUTER CORPORATION Unadjusted Trial Balance At December 31, 2015 (millions of dollars) Debit Credit Cash $ 10,200 Short-term investments 100 Trade receivables 19,300 Inventories 7,900 14,400 Prepayments Property, plant, and equipment Accumulated depreciation Intangible assets Trade payables Accrued liabilities 18,900 $ 8,100 50,700 24,200 17,300 Income taxes payable 6,200 Deferred revenue 900 Long-term borrowings Contributed capital Retained earnrings 24,700 14,000 17,800 Product revenue 91,700 Services revenue 26,300 Interest revenue 400 Cost of products sold 69,300 Cost of services sold 20,300 Interest expense Research and development costs Other operating expenses Income tax expense 300 3,600 14,500 2,100 $231,600 $231,600