As stated in its annual report, Unik Computer Corporation is an information technology company, developing and marketing hardware, software, solutions, and services. The fallowing trial balance lists accounts that Unik uses. Assume that the balances are unadjusted at the end of the fiscal year ended December 31, 2018:

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 Trilal Balance At December 31, 2018 (millions of dollars) Credit Debit $ 10,200 Cash Short-term investments 100 Accounts receivable 19,300 Inventories 7,900 Prepaid expenses Property, plant, and equipment Accumulated depreciation Intangible assets Accounts payable 14,400 18,900 $ 8,100 50,700 24,200 Accrued liabilities 17,300 Income taxes payable 6,200 900 Deferred revenue Long-term debt Contributed capital Retained earnings 24,700 14,000 17,800 Product revenue 91,700 26,300 Services revenue Interest revenue 400 Cost of products sold 69,300 20,300 Cost of services sold Interest expense 300 Research and development costs Other operating expenses 3,600 14,500 Income tax expense 2,100 $231,600 $231,600