Required:

Prepare the following 2016 items in proper form for Carolyn:

1. the income statement

2. the retained earnings statement

3. the ending balance sheet (Hint: The Common Stock, Additional Paid-in Capital, and Retained Earnings accounts are summed to determine the total shareholders equity.)

4. the closing entries in the general journal

Carolyn Company has prepared the following alphabetical adjusted trial balance on December 31, 2016:

Carolyn Company

ADJUSTED TRIAL BALANCE

December 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Accounts Payable		6,400.00
2	Accounts Receivable	5,700.00
3	Accumulated Depreciation: Buildings		19,000.00
4	Accumulated Depreciation: Equipment		11,000.00
5	Additional Paid-in Capital		15,000.00
6	Administrative Expenses	6,500.00
7	Allowance for Doubtful Accounts		600.00
8	Buildings	42,000.00
9	Common Stock		4,000.00
10	Cash	5,000.00
11	Cost of Goods Sold	27,400.00
12	Dividends	2,400.00
13	Equipment	22,000.00
14	Income Tax Expense	4,035.00
15	Income Taxes Payable		4,035.00
16	Interest Expense	650.00
17	Interest Payable		650.00
18	Inventory	10,800.00
19	Land	6,800.00
20	Notes Payable		10,000.00
21	Prepaid Insurance	1,600.00
22	Rent Revenue		2,800.00
23	Retained Earnings		14,500.00
24	Sales Revenue		54,900.00
25	Selling Expenses	9,700.00
26	Unearned Rent		700.00
27	Wages Payable		1,000.00
28	Totals	144,585.00	144,585.00
	For classification purposes:
	Interest payable is due July 1, 2017
	Notes payable are due July 1, 2020