f. Prepare an adjusted trial balance. h. Prepare the closing entries, using the income Summary account to close out revenues and expenses. Applying the Entire Accounting cycle The post-closing trial balance for Wilson Corp, a retailer, at December 31 of Year 1 follows. - Note: Use negative signs only in the 'Assets' section of the balance sheet for contra asset accounts. The following transactions occurred during Year 2 in the order shown (use the number at the left in place of a date). 1. Sales revenue was $60,000, of which $20,000 was on credit: the cost of goods sold, provided using perpetual inventory, was $39,000. 2. collected $34,000 cash on accounts recelvable. 3. Paid $8,000 cash toward income taxes payable (for Year 1 ). 4. Purchased $80,000 of merchandise, of which $16.000 was on credit. 5. Paid \$12.000 cash toward accounts payable 6. Sales revenue was $144,000 (in cash); cost was $93,600 7. Paid $38.000 cash in operating expenses: 8. Onjuly 1, Year 2, issued 2,000 shares of common stock, par \$1, for \$2,000 cash. 9. Purchased $200,000 of merchandise, of which $54,000 was on credit. 10, Sales revenue was $196,000, of which $60,000 was on credit: cost of goods sold, $1,27,400 11. Collected \$52,000 cash toward accounts recelvable. 12. Paid $56,000 cash toward accounts payable. 13. Paid $36,000 cash for various operating expenses. d. Prepare December 31, Year 2, adjusting entries for the following additional information. 1. Increase Allowance for Doubtful Accounts by $400. Hint: Debit Operating Expenses. 2. Accrued income tax expense is $23,568. Hint credit income Taxes Payable. 3. Accrued salaries were $600. 4. Use straight-line depreciation for equipment. 5. Adjust Prepaid insurance for current year expense