Accounts of Pioneer Heating Corporation at the end of the first year of operations show the balances listed at the top of the next page. The end-of-year physical inventory is \($50,000\). Prepaid operating expenses are \($4,000,\) and accrued sales commissions payable are \($5,900\). Investment revenue receivable is \($1,000.\) Depreciation for the year on buildings is \($4,500\) and on machinery, \($5,000\). Federal and state income taxes for the year are estimated at \($18,100\) 

1. Prepare the necessary entries to adjust and close the books, assuming use of the adjusting method for inventory.
2. Prepare a post-closing trial balance.

Transcribed Image Text:

Debit $ 39,000 $ Credit Cash Investment Lond Buildings Machinery Accounts Payable Common Stock Additional Paid-In Capital Sales Purchases. Sales Commissions. General Operating Expenses Investment Revenue... Totals......................... 50,000 70,000 180,000 100,000 65,000 320,000 40,000 590,000 280,000 200,000 101,000 5,000 $1,020,000 $1,020,000