Question

Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 500 shares ($0.10 par value per share) issued at the end of the year for $3,000 are included below: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

	Debit				Credit
Cash	$	1,500
Accounts receivable		2,200
Interest receivable		100
Prepaid insurance		1,600
Notes receivable (long-term)		2,800
Equipment		15,290
Accumulated depreciation				$	3,000
Accounts payable					2,400
Accrued expenses payable					3,920
Income taxes payable					2,700
Unearned rent revenue					500
Common Stock (800 shares)					80
Additional paid-in capital					3,620
Retained earnings					2,000
Sales revenue					38,500
Interest revenue					100
Rent revenue					800
Wages expense		19,500
Depreciation expense		1,800
Utilities expense		380
Insurance expense		750
Rent expense		9,000
Income tax expense		2,700
Total	$	57,620		$	57,620

Record the closing entry at the end of the current year.

Transaction	General Journal	Debit	Credit
1

etc...

Answer 1

Closing entries:
S.no.	Accounts title and explanationss				Debit $	Credit $
a.	Sales revenue				38500
	Interest revenue				100
	Rent revenue				800
	Income summary					39400
b.	Income Summary				34130
	Wages expense					19500
	Depreciation expenses					1800
	Utilities expenses					380
	Insurance expenss					750
	Rent expenses					9000
	Income tax expenses					2700
c.	Income Summary				5270
	Retained earnings					5270