Solomon Corporation’s adjusted trial balance for the year ending December 31, 2015, is:
SOLOMON CORPORATION
Adjusted Trial Balance
December 31, 2015
DebitCredit
Cash.......................................................$ 4,000
Accounts receivable...........................................6,500
Equipment ..................................................78,000
Accumulated depreciation.....................................CREDIT:.$ 14,000
Notes payable ...............................................CREDIT:10,000
Common stock...............................................CREDIT:43,000
Retained earnings ............................................CREDIT:12,600
Service fees earned ...........................................CREDIT:71,000
Rent expense................................................18,000
Salaries expense .............................................37,100
Depreciation expense..........................................7,000
Totals ......................................................$150,600
a. Prepare its income statement and statement of stockholders’ equity for the current year, and its balance sheet for the current year-end. Cash dividends were $8,000 and there were no stock issuances or repurchases.
b. Prepare entries to close its temporary accounts in journal entry form.
c. Set up T-accounts for each of the ledger accounts, enter the balances above, and post the closing entries to them. And add a horizontal closing statement. After these entries are posted, what is the post-closing balance of the Retained Earnings account?