The pre-closing balances in the T-accounts of Naim Company at the end of the third year of operations,
December 31, 2014, follow. The 2014 adjusting entries are identified by letters.

Required:
1. Develop three 2014 trial balances for Naim Company using the following format:

2. Write an explanation for each adjusting entry for 2014.
3. Record the closing journal entry at the end of 2014.
4. What was the average income tax rate for 2014?
5. What was the average issue (sale) price per share of the capitalstock?

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Common Stock (10,000 shares) Cash Note Payable (6%) Bal 25,000 Bal 10,000 Ba 10,000 Maintenance Supplies Ba 800 (a)500 Service Equipment Interest Payable Retained Eamings (b) 600 Bal 12,000 Income Taxes Payable Service Revenue Bal 90,000 (f) 13,020 Bal. 214,000 (c) 10,000 Accumulated Depreciation, Service Equipment Wages Payable Expenses Bal 21,000 (d) 9,000 (e 400 Ba. 160,000 500 (b) 600 600 e 9,000 (c) 10,000 Ba 13,600 ()13,020 Remaining Assets Unearned Revenue (e) 400 Bal. 44,800( Additional Paid-in Capital Bal 40,000 UNADJUSTED TRIALADJUSTED TRIAL POST-CLOSING TRIAL BALANCE BALANCE BALANCE Account Debit Cretdit Debit Credit Debit Credit