Trails, Inc., publishes magazines for skiers and hikers. The company's adjusted trial balance for the year ending December 31, 2018, is:

REQUIRED:

a. Prepare its income statement and statement of stockholders' equity for 2018, and its balance sheet at December 31, 2018. There were no cash dividends and no stock issuances or repurchases during the year.

b. Prepare entries to close its accounts in journal entry form.

Transcribed Image Text:

TRAILS, INC. Adjusted Trial Balance December 31, 2018 Debit Credit $ 3,400 Cash...... Accounts receivable. .... ... .... ..... 8,600 4,200 ... . Supplies... Prepaid insurance. Office equipment Accumulated depreciation Accounts payable... Subscription liabilities. Salaries payable.. Common stock... Retained earnings Subscription revenue Advertising revenue. Salaries expense. Printing and mailing expense Rent expense... Supplies expense. Insurance expense. Depreciation expense.. Income tax expense. 930 66,000 ... $ 11,000 2,100 10,000 3,500 25,000 23,220 168,300 49,700 ... .... .. .... 100,230 85,600 8,800 6,100 1,860 5,500 1,600 ... ... .... Totals .. $292,820 $292,820