The following trial balance was taken from the books of Nebraska Corporation on December 31.

Account	Debit	Credit
Cash	$20,000
Accounts Receivable	40,200
Notes Receivable	10,000
Inventory	90,000
Prepaid Insurance	4,800
Equipment	50,000
Accumulated Depreciation— Equipment		7,000
Accounts Payable		11,000
Long term notes payable		10,000
Unearned Revenue		800
Common Stock		45,000
Retained Earnings		100,000
Dividends	20,000
Sales Revenue		240,000
Cost of Goods Sold	116,000
Salaries and Wages Expense	50,000
Depreciation Expense	5000
Rent Expense	7800
	$413,800	$413,800

Required:

1. Prepare the necessary closing entries, and financial statements (Income statement, Statement of Retained Earnings, and Classified Balance Sheet) at December 31st.

Answer rating: 100% (QA)

Step 14 Closing entries are recorded to close temporary accounts ... View the full answer