Below is the trial balance for Boudreaux Company as of December 31.

Consider the following additional information:
(a) Boudreaux uses a perpetual inventory system.
(b) The prepaid expenses were paid on September 1 and relate to a 3-year insurance policy that went into effect on September 1.
(c) The unearned revenue relates to rental of an unused portion of the corporate offices. The $42,000 was received on April 1 and represents payment in advance for one year€™s rental.
(d) Plant and Equipment includes $15,000 for routine equipment repairs that were erroneously recorded as equipment purchases. The repairs were made on December 30.
(e) Other Assets include $7,000 for miscellaneous office supplies, which were purchased in mid-October. An end-of-year count reveals that only $4,200 of the office supplies remain.
(f) Selling, General, and Administrative Expenses incorrectly includes $13,000 for office furniture purchases (Other Assets). The purchases were made on December 30.
(g) Inventory erroneously includes $7,500 of inventory that Boudreaux had purchased on account but that was returned to the supplier on December 28 because of unsatisfactory quality.
1. Record the entries necessary to adjust the books.
2. Record the entries necessary to close the books. Assume the adjustments in (1) do not affect Income Tax Expense.
3. Prepare a post-closing trialbalance.

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Debit Credit Accounts Recelvable Inventory Prepaid Expenses 365,000 52,000 36,000 70,000 1,254,000 ,275,000 Piant and Equipment. Other Assets Accounts Payable Wages, Interest, and Taxes Payable Unearned Revenue Long-Term Debt Other Liabllties Common Stock Retalned Earnings $ 154,000 218,000 42,000 1,190,000 297,000 195,000 915,000 211,000 2.762,000 29.000 Interest Revenue Costs of Goods Sold Selling, General, and Administrative Expensesu. Interest Expense Income Tax Expense 1,565,000 615,000 82,000 205,000 $5,802,000 Totals $5,802,000