Question

Prepare the 4 required year-end closing entries, given the following adjusted trial balance. Use Journal Entry format.

	DEBIT	CREDIT
Cash	$112,000
Accounts Receivable	$27,000
Prepaid Rent	$15,000
Prepaid Insurance	$9,000
Office Supplies	$3,300
Equipment	$38,000
Accumulated Depreciation - Equipment		$3,200
Building	$288,000
Accumulated Depreciation - Building		$42,000
Land	$700,000
Accounts Payable		$25,800
Salaries Payable		$14,500
Interest Payable		$2,500
Notes Payable		$72,000
Common Stock		$200,000
Retained Earnings		$710,000
Dividends	$200,500
Service fees earned		$430,800
Salaries Expense	$90,000
Insurance Expense	$5,200
Rent Expense	$5,000
Depreciation Expense - Equipment	$800
Depreciation Expense - Building	$7,000
TOTAL	$1,500,800	$1,500,800

Answer 1