The following trial balance was taken from the books of XYZ Corporation on December 31, 2013.

The following trial balance was taken from the books of XYZ Corporation on December 31, 2013.

Account                              Debit         Credit

Cash                                   $9,000

Accounts Receivable        40,000

Notes Receivable           10,000

Inventory                           44,000

Prepaid Insurance             4,800

Equipment                         110,000

Accumulated Depreciation--Equip.15,000

Accounts Payable                        12,600

Common Stock                                44,000

Retained Earnings                        75,000

Sales Revenue                              260,000

Cost of Goods Sold           126,000

Salaries and wages Expense  50,000

Rent Expense                    12,800         ___        

Totals                        $406,600    $406,600

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

A.  Insurance expired during the year, $2,400.

B.  Depreciation on equipment, 10 year life, SL, no salvage value.

C.  Interest at 6% is receivable on the note for one full year.

D.  Accrued salaries and wages at December 31, $5,800.

Required:

A.  Prepare the necessary adjusting entries.

B.  Prepare an Income Statement and Balance Sheet

C.  Prepare the necessary closing entries.