The following trial balance was taken from the books of Fisk Corporation on December 31, 2010. Account Debit Credit Cash $ 12,000 Accounts Receivable 40,000 Note Receivable 7,000 Allowance for Doubtful Accounts $ 1,800 Merchandise Inventory 44,000 Prepaid Insurance 4,800 Furniture and Equipment 125,000 Accumulated Depreciation--F. & E. 15,000 Accounts Payable 10,800 Share Capital–Ordinary 44,000 Retained Earnings 55,000 Sales 280,000 Cost of Goods Sold 111,000 Salaries Expense 50,000 Rent Expense 12,800 Totals $406,600 $406,600 At year end, the following items have not yet been recorded. Insurance expired during the year, $2,000. Estimated bad debts, 1% of gross sales. Depreciation on furniture and equipment, 10% per year. Interest at 6% is receivable on the note for one full year. Rent paid in advance at December 31, $5,400 (originally charged to expense). Accrued salaries at December 31, $5,800. Instructions Prepare the necessary adjusting entries. Prepare the necessary closing

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The following trial balance was taken from the books of Fisk Corporation on December 31, 2010

Accounting Mar 23, 2021

The following trial balance was taken from the books of Fisk Corporation on December 31, 2010.

Account	Debit	Credit
Cash		$ 12,000
Accounts Receivable	40,000
Note Receivable	7,000
Allowance for Doubtful Accounts		$ 1,800
Merchandise Inventory	44,000
Prepaid Insurance	4,800
Furniture and Equipment	125,000
Accumulated Depreciation--F. & E.		15,000
Accounts Payable		10,800
Share Capital–Ordinary		44,000
Retained Earnings		55,000
Sales		280,000
Cost of Goods Sold	111,000
Salaries Expense	50,000
Rent Expense	12,800
Totals	$406,600	$406,600

At year end, the following items have not yet been recorded.

Insurance expired during the year, $2,000.

Estimated bad debts, 1% of gross sales.
Depreciation on furniture and equipment, 10% per year.

Interest at 6% is receivable on the note for one full year.
Rent paid in advance at December 31, $5,400 (originally charged to expense).
Accrued salaries at December 31, $5,800.

Instructions

1. Prepare the necessary adjusting entries.
2. Prepare the necessary closing entries.

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