Gibson Company’s adjusted balances at December 31, 2015 (listed alphabetically) were:

Gibson Company’s adjusted balances at December 31, 2015 (listed alphabetically) were:

Accounts Payable

Equipment

Office Expenses

Service Revenue

61,100

327,540

627,750

2,546,200

Accounts Receivable

Income Tax Expense

Prepaid Rent

Supplies

223,600

0

5,600

13,100

Accumulated Depreciation—Equipment

Income Tax Payable

Rent Expense

Supplies Expense

19,000

2,750

140,920

38,000

Cash

Interest Expense

Retained Earnings

Unearned Revenue

158,000

17,100

?

28,500

Common Stock

Land

Salaries and Wages Expense

Utilities Expense

233,000

65,000

1,680,000

24,960

Depreciation Expense

Notes Payable (long-term)

0

178,000

Gibson prepared, but did not yet post, additional adjusting journal entries (AJEs) for $3,900 of depreciation and $26,200 of income taxes.

Required:

1.

Prepare an adjusted trial balance listing the accounts in proper order at December 31, 2015 taking the additional adjusting journal entries into account. Solve for the "?" in Retained Earnings. 2. Does the Retained Earnings balance determined in requirement 1 represent the balance at December 31, 2015, or December 31, 2014?       December 31, 2014   Explanation: 1. Because debits must equal credits in a trial balance, the balance in Retained Earnings is determined in this exercise as the amount in the credit column necessary to make debits equal credits (a “plugged” figure). 2. Because the temporary accounts for 2015 have not yet been closed to Retained Earnings, the Retained Earnings balance determined in requirement 1 must represent the balance as of December 31, 2014.