Question

The adjusted trial balance columns of the worksheet for Martinez Company are as follows.

Martinez Company Worksheet For the Year Ended December 31, 2019
				Adjusted Trial Balance
Account No.		Account Titles		Dr.		Cr.
101		Cash		5,300
112		Accounts Receivable		10,700
126		Supplies		1,600
130		Prepaid Insurance		1,900
157		Equipment		27,500
158		Accumulated Depreciation—Equipment				5,100
200		Notes Payable				14,000
201		Accounts Payable				6,100
212		Salaries and Wages Payable				2,100
230		Interest Payable				700
311		Common Stock				9,900
320		Retained Earnings				3,400
332		Dividends		6,800
400		Service Revenue				63,200
610		Advertising Expense		8,900
631		Supplies Expense		4,000
711		Depreciation Expense		5,100
722		Insurance Expense		3,600
726		Salaries and Wages Expense		28,400
905		Interest Expense		700
		Totals		104,500		104,500

Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

--Closing entries

Accounts title	Debit	Credit
Service Revenue	$63,200
Income Summary		$63,200
(to close revenues)
Income Summary	$50,700
Advertising Expense		$8,900
Supplies Expense		$4,000
Depreciation Expense		$5,100
Insurance Expense		$3,600
Salaries and Wages Expense		$28,400
Interest Expense		$700
(to close expenses)
Income Summary	$63,200
Retained Earnings		$63,200
(to close Net Income)
Retained Earnings	$6,800
Dividends		$6,800
(to close dividend)