Austin Co., a small service repair company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2010:

Data not yet recorded at December 31, 2010:
a. Depreciation expense for 2010, $3,000.
b. Insurance expired during 2010, $450.
c. Wages earned by employees but not yet paid on December 31, 2010, $1,100.
d. The supplies count on December 31, 2010, reflected $600 remaining on hand to be used in 2011.
e. Income tax expense was $2,950.

Required:
1. Record the 2010 adjusting entries.
2. Prepare an income statement and a classified balance sheet for 2010 to include the effects of the preceding five transactions.
3. Record the 2010 closingentry.

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Account Titles Debit Credit Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation Other assets Accounts payable Wages payable Income taxes payable Note payable (2 years; 12% interest due each December 31 ) Contributed capital (4,000 shares outstanding all year) Retained earnings Service revenue Remaining expenses (not detailed; excludes income tax) Income tax expense 19.600 7,000 1,300 900 27,000 $12,000 5.100 2.500 5,000 16,000 10,300 48,000 32,900 Totals $93,800 $93.800