Problem E The following trial balance and additional data are for Florida Time-Share Property Management Company:

FLORIDA TIME-SHARE PROPERTY MANAGEMENT COMPANY Trial Balance 2010 December 31 Debits Credits Cash $ 424,000 Prepaid Rent 28,800 Prepaid Insurance 7,680 Supplies on Hand 2,400 Office Equipment 24,000 Accumulated Depreciation—Office Equipment $ 5,760 Automobiles 64,000 Accumulated Depreciation—Automobiles 16,000 Accounts Payable 2,880 Unearned Management Fees 12,480 Capital Stock 360,000 Retained Earnings, 2010 January 1 120,640 Dividends 28,000 Commissions Revenue 260,000 Management Fee Revenue 19,200 Salaries Expense 199,840 Advertising Expense 2,400 Gas and Oil Expense 14,240 Miscellaneous Expense 1,600

$ 796,960 $ 796,960 Insurance expense for the year, USD 3,840.

Rent expense for the year, USD 19,200.

Depreciation expense: office equipment, USD 2,880; and automobiles, USD 12,800.

Salaries earned but unpaid at December 31, USD 26,640.

Supplies on hand at December 31, USD 1,000.

The unearned management fees were received and recorded on 2010 November 1. The advance payment covered six months' management of an apartment building.

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 an income statement.

c. Prepare a statement of retained earnings.

d. Prepare a classified balance sheet.

e. Prepare adjusting and closing entries.