St. Denis, Inc., a small service 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, 2011:

Data not yet recorded at December 31, 2011:
a. The supplies counted on December 31, 2011, reflected $240 remaining on hand to be used in 2012.
b. Insurance expired during 2011, $400.
c. Depreciation expense for 2011, $3,200.
d. Wages earned by employees not yet paid on December 31, 2011, $720.
e. Income tax expense was $5,880.

Required:
1. Record the 2011 adjusting entries.
2. Prepare an income statement and a classified balance sheet that include the effects of the preceding five transactions.
3. Record the 2011 closingentry.

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Account Titles Debit Credit $48,000 0.400 640 800 6,000 Cash Accounts receivable Prepaid insurance Service trucks 9.600 Accumulated depreciation Other assets 8,960 Accounts payable 2,400 Account Titles Debit Credit Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31 ) Contributed capital (5,000 shares outstanding) Retained earnings Service revenue Remaining expenses (not detailed; excludes income tax) ncome tax expense Totals 16,000 22,560 6,000 61.600 33,360 $118,160 S118,160