Question

The adjusted trial balance for Blossom Company, owned by D. Blossom, are as follows:

BLOSSOM COMPANY Adjusted Trial Balance December 31, 2021
				Adjusted Trial Balance
Account No.		Account Titles		Dr.		Cr.
101		Cash		$4,000
112		Accounts receivable		9,500
126		Supplies		200
130		Prepaid insurance		700
157		Equipment		25,700
158		Accumulated depreciation—equipment				$4,300
200		Notes payable				13,700
201		Accounts payable				4,800
212		Salaries payable				1,100
230		Interest payable				470
301		D. Blossom, capital				5,200
306		D. Blossom, drawings		5,700
400		Service revenue				59,700
610		Advertising expense		7,100
631		Supplies expense		2,700
711		Depreciation expense		4,300
722		Insurance expense		2,200
726		Salaries expense		26,700
905		Interest expense		470
		Totals		$89,270		$89,270

Use T accounts to post the closing entries and calculate the balance in each account. Income Summary is account No. 350. (Ignore the accounts not affected by the closing entries.)  (Post entries in the order of journal entries presented in the previous part. For balances ending in 0 select bal for the date and 0 for the amount for the normal balance of the account.)

Answer 1

Service revenue Account Income summary DR Account $ 59,700.00 Balance $ 59,700.00 CR $59,700.00 $ 59,700.00 Advertising expense Account Balance DR Account $ 7,100.00 Income summary $ 7,100.00 CR $ 7,100.00 $ 7,100.00 Supplies expense Account Balance DR Account $ 2,700.00 Income summary $ 2,700.00 CR $ 2,700.00 $ 2,700.00 Depreciation expense Account Balance CR DR Account $ 4,300.00 Income summary $ 4,300.00 $ 4,300.00 $ 4,300.00 Insurance expense Account Balance CR DR Account $ 2,200.00 Income summary $ 2,200.00 $ 2,200.00 $ 2,200.00 Salaries expense Account Balance CR DR Account $ 26,700.00 Income summary $ 26,700.00 $ 26,700.00 $ 26,700.00 Interest expense Account Balance DR $ $ Account 470.00 Income summary 470.00 CR $ $ 470.00 470.00 CR $59,700.00 Income summary Account Advertising expense Supplies expense Depreciation expense Insurance expense Salaries expense Interest expense D. Bloosom capital DR Account $ 7,100.00 Service revenue $ 2,700.00 $ 4,300.00 $ 2,200.00 $ 26,700.00 $ 470.00 $ 16,230.00 $ 59,700.00 $ 59,700.00 Blossom drawings Account Balance DR Account CR $ 5,700.00 D. Blossom capital $ 5,700.00 $ 5,700.00 $ 5,700.00