Exercise 3-18A Record closing entries and prepare a post-closing trial balance (LO3-6, 3-7)
Laker Incorporated’s fiscal year-end is December 31, 2021. The
following is an adjusted trial balance as of December
31.
| Accounts | Debit | Credit | ||||||||
| Cash | $ | 12,000 | ||||||||
| Supplies | 39,000 | |||||||||
| Prepaid Rent | 30,000 | |||||||||
| Accounts Payable | $ | 3,000 | ||||||||
| Notes Payable | 30,000 | |||||||||
| Common Stock | 40,000 | |||||||||
| Retained Earnings | 9,000 | |||||||||
| Dividends | 4,000 | |||||||||
| Service Revenue | 54,000 | |||||||||
| Salaries Expense | 20,000 | |||||||||
| Advertising Expense | 13,000 | |||||||||
| Rent Expense | 10,000 | |||||||||
| Utilities Expense | 8,000 | |||||||||
| Totals | $ | 136,000 | $ | 136,000 | ||||||
Required:
1. Prepare the necessary closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
| Debit | Credit | |
| Service revenue | 54000 | |
| Retained earnings | 54000 | |
| Retained earnings | 51000 | |
| Salaries expense | 20000 | |
| Advertising expense | 13000 | |
| Rent expense | 10000 | |
| Utilities expense | 8000 | |
| Retained earnings | 4000 | |
| Dividends | 4000 |
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