Problems : Write your answer in the space provided or on a separate sheet of paper.

The following trial balance was taken from the books of Fisk Corporation on December $31,2025.$

At year$-$end, the following items have not yet been recorded.

a$.$ Insurance expired during the year, $$2,000.$

b$.$ Estimated bad debts, $$2,600.$

c$.$ Depreciation on equipment, $10\%$ per year on original cost.

d$.$ Interest at $6\%$ is receivable on the note for one full year.

e$.$ Rent paid in advance at December $31,$$$5,400($originally charged to expense$).$

f$.$ Accrued salaries and wages at December $31,$$$5,800.$

Instructions

$($a$)$ Prepare the necessary adjusting entries.

$($b$)$ Prepare the necessary closing entries.