The year-end financial statements of Fighting Illini Financial Services are provided below. FIGHTING ILLINI
Income Statement
Service revenue $ 89,200
Expenses:
Salaries $ 49,900
Supplies 10,000
Rent 8,400
Delivery 4,600 72,900
Net income $ 16,300
FIGHTING ILLINI
Statement of Stockholders' Equity
Common Retained Total Stockholders' Stock Earnings Equity
Beginning balance,
Jan. 1 $ 69,000 $ 33,200 102,200
Issue stock 19,500 19,500
Net income 16,300 16,300
Dividends (6,900 ) (6,900 )
Ending balance,
Dec. 31 $ 88,500 $ 42,600 $ 131,100
FIGHTING ILLINI
Balance Sheet
Assets Liabilities
Cash $ 7,500 Accounts payable $ 5,500
Accounts receivable 10,100 Stockholders' Equity:
Land 119,000 Common stock $ 88,500
Retained earnings 42,600 131,100
Total assets $ 136,600 Total liabilities and equities $ 136,600
Required:
1. Record year end closing entries.
2. Prepare a post closing trial balance.