Refer to P 2–3 and complete the following steps:
1. Enter the unadjusted balances from the trial balance into T accounts.
2. Post the adjusting entries prepared in P 2–3 to the accounts.
3. Prepare an adjusted trial balance.
4. Prepare an income statement and a statement of shareholders’ equity for the year ended December 31, 2021, and a classified balance sheet as of December 31, 2021. Assume that no common stock was issued during the year and that $4,000 in cash dividends were paid to shareholders during the year.
5. Prepare closing entries and post to the accounts.
6. Prepare a post-closing trial balance.

P 2–3

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Account Title Debits Credits Cash 30,000 40,000 1,500 60,000 Accounts receivable Supplies Inventory Notes receivable 20,000 Interest receivable -0- 2,000 6,000 80,000 Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable 30,000 31,000 -0- 50,000 -0- Deferred sales revenue 2,000 Common stock 60,000 Retained earnings 28,500 Dividends 4,000 Sales revenue 146,000 Interest revenue -0- Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense 70,000 18,900 11,000 -0- -0- Supplies expense Insurance expense Advertising expense 1,100 -0- 3,000 Totals 347,500 347,500