continuation to my last post Problem 5.1 A. and please make sure work is not cut off thank you.

Instructions a. Prepare a corrected set of financial statements dated December 31, current year. (You may assume that all of the figures in the cornpany's adjusted trial balance were reported correctly except for Interest Payable of \$240, which was mistakenly omitted in the financial statements prepared by Jack.) b. Prepare the necessary year-end closing entries. c. Using the financial statements prepared in part a, briefly evaluate the company's profitability and liquidity. (No transactions affected the capital stock account during the year.) LO5-1, L05-2, L05-4, LO5-6 Party Wagon, Inc., provides musical entertainment at weddings, dances, and various other func. PROBLEM 5.1A tions. The company performs adjusting entries monthly, but prepares closing entries annually on Correcting Classification December 31. The company recently hired Jack Armstrong as its new accountant. Jack's firs assignErrors ment was to prepare an income statement, a statement of retained earmings, and a balance shoe Instructions a. Prepare a corrected set of financial statements dated December 31, current year. (You may assume that all of the figures in the cornpany's adjusted trial balance were reported correctly except for Interest Payable of \$240, which was mistakenly omitted in the financial statements prepared by Jack.) b. Prepare the necessary year-end closing entries. c. Using the financial statements prepared in part a, briefly evaluate the company's profitability and liquidity. (No transactions affected the capital stock account during the year.)