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.

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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