Mackenzie, Inc. uses a perpetual inventory system and has prepared the following adjusted trial balance on December 31, 2013:
Debit Credit
Cash 2,520
Accounts Receivable 3,570
Allowance for Doubtful Accounts 130
Inventory 7,220
Prepaid Insurance 830
Land 5,400
Buildings and Equipment 30,800
Accumulated Depreciation 15,400
Accounts Payable 2,880
Salaries Payable 330
Unearned Rent 360
Income Taxes Payable 2,262
Note Payable (due July 2017) 4,550
Interest Payable (due July 2017) 770
Common Stock (1,400 shares) 8,400
Retained Earnings, January 1, 2013 11,100
Dividends 1,120
Sales Revenue 33,300
Sales Returns 2,410
Rent Revenue 1,450
Cost of Goods Sold 15,900
Selling Expenses 4,970
Selling Expenses 4,970
Administrative Expenses 3,160
Interest Expense 770
Income Tax Expense 2,262
Totals 80,932 80,932
1. Prepare the company's income statement
2. Prepare the company's statement of retained earnings
3. Prepare the company's closing entries in the general journal