Question

The adjusted trial balance for Sandhill Company, owned by D. Sandhill, are as follows: SANDHILL COMPANY Adjusted Trial Balance December 31, 2021 Adjusted Trial Balance Dr. Cr. Account No. 101 112 126 $4,500 11,600 1,700 700 27,200 157 158 200 212 230 301 Account Titles Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation-equipment Notes payable Accounts payable Salaries payable Interest payable D. Sandhill, capital D. Sandhill, drawings Service revenue Advertising expense Supplies expense Depreciation expense Insurance expense Salaries expense Interest expense Totals $5,500 13,800 5,600 3,400 480 14,200 306 8,200 60,400 610 711 722 726 905 8,100 3,300 5,500 4,300 27,800 480 $103,380 $103,380

Answer 1

Journal Entry
Account Tittle		Debit	Credit
Service revenue		$60,400
Income summary			$60,400
( close revenue accounts)
Income summary		$49,480
Advertising Expense			8100
Supplies Expense			3300
Salaries expense			$27,800
Interest Expense			480
Insurance Expense			4300
Depreciation Expense			5500
( close expenses account)
Income summary ($60400-49480)		$10,920
Retained Earning			$10,920
( close income summary)
D Sandhil Capital		$8,200
D Sandhil Drawing			$8,200
TO Record closed D Sandhil Drawing

Post Closing Trial Balance
Title	Debit	Credit
Cash	$4,500
Account Reciable	11600
Supplies	1700
Prepaid Insurance	$700
Equipment	27200
Accumulated Depreciation		$5,500
Note Payable		$13,800
Account Payable		$5,600
Salaries Payable		3400
Interest Payable		480
D. Sandhil' Capital (14200+10920-8200)		16920
Total	$45,700	$45,700

Income Summary No. 350
610	$8,100.00	400	$60,400.00
631	$3,300.00
711	$27,800.00
722	$480.00
726	$4,300.00
905	$5,500.00
301	$10,920.00
	$60,400.00		$60,400.00
D Sandhil Capital No. 301
306	$8,200.00	301	$14,200.00
Bal	$16,920.00	350	$10,920.00
	$25,120.00		$25,120.00
D Sanhl Drawing. 306
306	$8,200.00	301	$8,200.00
Service Revenue
		400	$60,400.00
301	$60,400.00