Note this question is 5.3 in the Pre-recorded Tutorial Questions)

SRP Ltd has the following unadjusted trial balance as at 31 Dec 2015.

Account Titles

Debit ($)

Credit ($)

Cash

19,600

Accounts Receivable

7,000

Supplies

1,300

Prepaid Insurance

900

Equipment

27,000

Accumulated Depreciation

12,000

Other Assets

5,100

Accounts Payable

7,500

Share Capital (3000 shares outstanding all year)

16,000

Retained Profit

10,300

Service Revenue

48,000

COGS

32,900

Total

93,800

93,800

Note: Data not yet recorded as at 31 Dec 2015 includes the following five (5) transactions:

1)Depreciation expense for 2015 was $3,000.

2)Insurance expired during 2015 was $450.

3)Wages earned by employees but not yet paid on 31 December 2015 was $2,100.

4)The supplies count on 31 December 2015 reflected $800 remaining supplies on hand to be used in 2016.

5)Income tax expense was $3,150.

Required: (10 marks)

1)Record the 2015 adjusting entries.

2)need an income statement and a classified balance sheet for 2015 to include the effect of the five (5) transactions listed above.

Prepare closing entries.