Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2014:

Data not yet recorded at December 31, 2014, included:
a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand to be used in 2015.
b. Insurance expired during 2014, $800.
c. Depreciation expense for 2014, $3,700.
d. Wages earned by employees not yet paid on December 31, 2014, $640.
e. Income tax expense, $5,540.

Required:
1. Record the 2014 adjusting entries.
2. Prepare an income statement and a classified balance sheet that include the effects of the preceding five transactions.
3. Record the 2014 closingentry.

Debit 42,000 11,600 900 800 19,000 Account Titles Credit Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated Other assets Accounts payable Wages payable Income taxes pavable Note payable (3 years: 10% interest due each December 31) Common stock (5,000 shares outstanding) Additional paid-in capital Retained earnings Service revenue Remainin Income tax expense ation 9,200 8,300 3,000 17,000 400 19,000 6,000 61,360 s (not detailed; excludes income tax) 33,360 Totals 15,960 115,960