The Fiorillo Company has the following account balances on December 31, 2007 prior to any adjustments:

Additional adjustment information:
(a) Depreciation on buildings, $1,100; on equipment, $600,
(b) Bad debts expense, $240,
(c) Interest accumulated but not paid: on note payable, $50; on mortgage payable, $530 (this interest is due during the next accounting period),
(d) Insurance expired, $175,
(e) Salaries accrued but not paid $370,
(f) Rent that was collected in advance and is now earned at year-end, $800,
(g) Office supplies on hand at year-end, $230 (expensed when originally purchased earlier in the year), and
(h) The income tax rate is 30% on current income and is payable in the first quarter of 2008.

Required
1. Transfer the account balances to a 10-column worksheet and prepare a trial balance.
2. Complete the worksheet.
3. Prepare the company's income statement, retained earnings statement, and balance sheet.
4. Prepare
(a) Adjusting, and
(b) Closing entries in the generaljournal.

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Debit S 1,900 4,700 Credit Debit Credit Accumulated depreciation: Accounts receivable Allowance for doubtful accounts Inventory Prepaid insurance equipment 3,100 4,300 1,400 1,200 $60 Accounts payable Notes payable (due March 1, 2008) Unearned rent 8,700 4, 100 38,000 Mortgage payable (due Buildings Accumulated depreciation: January 1, 2012) Capital stock (2,000 shares) Retained earnings (January 1, 2007) Dividends distributed 7,300 10,000 18,075 buildings Equipment 11,500 1,300 Debit Credit 2,000 10,700 Debit Credit 49,355 Utilities expense Sales revenue Cost of goods sold Salaries expense Office supplies expense 27,185 4,080