Refer to P3-4B.

Required:

Complete the following steps:

1. Enter the unadjusted balances from the trial balance into T-accounts.
2. Post the adjusting entries prepared in P3-4B to the accounts.
3. Prepare an adjusted trial balance.
4. Prepare an income statement and a statement of shareholders' equity for the yearended December 31, 2015, and a classified balance sheet as of December 31, 2015.Assume that no common stock is issued during the year.
5. Record closing entries.
6. Post closing entries to the accounts.
7. Prepare a post-closing trial balance.

Data From P3-4B:

Jaguar Auto Company provides general car maintenance to customers. The company's fiscal year-end is December 31. The December 31, 2015, trial balance (before any adjusting entries) appears below.

Information necessary to prepare the year-end adjusting entries appears below.
a. Depreciation on the machines for the year is $10,000.
b. Employee salaries are paid every two weeks. The last pay period ended on December 23. Salaries earned from December 24 through December 31, 2015, are $4,000.
c. On September 1, 2015, Jaguar borrows $35,000 from a local bank and signs a note. The note requires interest to be paid annually on August 31 at 9%. The principal is due in five years.
d. On March 1, 2015, the company purchases insurance for $24,000 for a one-year policy to cover possible injury to mechanics. The entire $24,000 was debited to Prepaid Insurance at the time of the purchase.
e. $5,000 of supplies remains on hand at December 31, 2015.
f. On December 30, Jaguar receives a utility bill of $2,200 for the month. The bill will not be paid until early January 2016, and no entry was recorded when the bill was received.