Problem B The adjusted trial balance for Denver Architects , Inc., follows:

DENVER ARCHITECTS, INC.

Adjusted Trial Balance 2010 December 31 Debits Credits Cash $ 90,000 Accounts Receivable 20,000 Interest Receivable 200 Notes Receivable 4,000 Prepaid Insurance 960 Prepaid Rent 2,400 Supplies on Hand 600 Equipment 60,000 Accumulated Depreciation—Equipment $ 12,500 Buildings 140,000 Accumulated Depreciation—Buildings 15,000 Land 56,240 Accounts Payable 60,000 Notes Payable 10,000 Interest Payable 750 Salaries Payable 7,000 Capital Stock 100,000 Retained Earnings, 2010 January 1 20,200 Dividends 40,000 Service Revenue 360,000 Insurance Expense 1,920 Rent Expense 9,600 Advertising Expense 1,200 Depreciation Expense—Equipment 2,500 Depreciation Expense—Buildings 3,000 Supplies Expense 2,280 Salaries Expense 150,000 Interest Expense 750 Interest Revenue 200

$ 585,650 $ 585,650

a. Prepare an income statement.

b. Prepare a statement of retained earnings.

c. Prepare a classified balance sheet.

d. Prepare the closing journal entries.

e. Show the post-closing trial balance assuming you had posted the closing entries to the general ledger.