The following trial balance was taken from the books of Fisk Corporation on December 31, 2007.

At year-end, the following items have not yet been recorded.
a. Insurance expired during the year, $2,000.
b. Estimated bad debts, 1% of gross sales.
c. Depreciation on furniture and equipment, 10% per year.
d. Interest at 6% is receivable on the note for one full year.
e. Rent paid in advance at December 31, $5,400 (originally charged to expense).
f. Accrued salaries at December 31, $5,800.

Instructions
(a) Prepare the necessary adjusting entries.
(b) Prepare the necessary closingentries.

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Account Debit Credit Cash Accounts Receivable Note Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Furniture and E Accumulated Depreciation--F. & E Accounts Payable Common Stock Retained Earnings Sales Cost of Goods Sold Salaries Expense Rent Expense 12.000 S 40,000 7.000 S 1,800 S 44.000 4,800 S 125,000 nent S 15,000 S 10,800 S 44,000 S 55,000 S 280,000 S 111,000 50.000 12.800 Total S 406.600 S 406.600