The adjusted trial balance for Audio Concepts at December 31, 2011 is as follows

The adjusted trial balance for Audio Concepts at December 31, 2011 is as follows (amounts are presented at their normal balance):

Cash                    15,000

Accounts Receivable  7,000

Inventory                19,000

Supplies                  4,000

Prepaid Insurance      6,000

Audio Equipment    190,000

Accumulated Depreciation—Audio Equipment     29,000

Accounts Payable              19,000

Note Payable                 70,000

Salaries Payable            3,000

Common Stock            20,000

Retained Earnings        92,000

Dividends                    14,000

Audio Revenue           122,000

Interest Revenue           1,000

Cost of Goods Sold       21,000

Depreciation Expense     12,000

Insurance Expense         3,000

Rent Expense            17,000

Salaries Expense          42,000

Supplies Expense          6,000

Required:

1. Create T-accounts for all accounts provided above. Prepare the closing journal entries required, post them to the T-accounts, and prepare a post-closing trial balance at December 31, 2011.

2. Prepare a Statement of Retained Earnings in proper format for Audio Concepts at December 31, 2011.

3. In a brief statement, correlate the results of the above two requirements.