Surian Motors Company prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2016:

Additional information:
(a) The equipment is being depreciated on a straight-line basis over a 10-year life, with no residual value;
(b) Salaries accrued but not recorded total $500;
(c) On January 1, 2016, the company had paid 3 years€™ rent in advance at $100 per month;
(d) Bad debts are expected to be 1% of total sales;
(e) Interest of $400 has accrued on the note payable;
(f) The income tax rate is 40% on current income and will be paid in the first quarter of 2017.
Required:
1. Complete the worksheet.
2. Prepare financial statements for 2016.
3. Prepare closing entries in the general journal.

Income Statement Retained Earnings Statement Balance Sheet Trial Balance Debit Adjustments Accounts Credit DebitC Credit Debit CreditD DebitCredit Debit 6 Accounts Recelvable Allowance for Doubtful Accounts Inve Prepaid Rent 10 30 1Accumulated Depreciation 3 Note Payable (due 7/1/17 15 Retalined Earnings (1/1/16 12,000 3,700 5,000 8,900 Common Stock (1,000 shares) 16 Dividends 17 Sales Revenues 18 Cost of Goods Sold 21 20 Uulities Ex 21 Acdvertisin 4,40 85,10 Totals 23