Alternate problem C The following trial balance and additional data are for Ramon Data Processing Company:

RAMON DATA PROCESSING COMPANY Trial Balance 2010 December 31 Debits Credits Cash $ 76,000 Accounts Receivable 98,000 Prepaid Rent 7,200 Prepaid Insurance 2,400 Equipment 80,000 Accumulated Depreciation—Equipment $ 40,000 Accounts Payable 30,000 Capital Stock 100,000 Retained Earnings, 2010 January 1 65,600 Dividends 24,000 Service Revenue 370,000 Commissions Expense 270,000 Travel Expense 36,000 Miscellaneous Expense 12,000

$ 605,600 $ 605,600 The prepaid rent is for the period 2010 January 1, to 2011 December 31.

The equipment is expected to last 10 years with no salvage value.

The prepaid insurance was for the period 2010 April 1, to 2011 March 31.

Accrued commissions payable total USD 3,000 at December 31.

a. Prepare a 12-column work sheet for the year ended 2010 December 31. You need not include account numbers or explanations of adjustments.

b. Prepare the adjusting journal entries.

c. Prepare the closing journal entries.