Question

M4-14 through M4-17 Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5]

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The Sky Blue Corporation has the following adjusted trial balance at December 31.

	Debit				Credit
Cash	$	1,230
Accounts Receivable		2,000
Prepaid Insurance		2,300
Notes Receivable (long-term)		3,000
Equipment		12,000
Accumulated Depreciation					$	2,600
Accounts Payable						5,420
Salaries and Wages Payable						1,000
Income Taxes Payable						2,900
Deferred Revenue						600
Common Stock						2,400
Retained Earnings						1,000
Dividends		300
Sales Revenue						42,030
Rent Revenue						300
Salaries and Wages Expense		21,600
Depreciation Expense		1,300
Utilities Expense		4,220
Insurance Expense		1,400
Rent Expense		6,000
Income Tax Expense		2,900
Total	$	58,250			$	58,250

M4-17

Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

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JOURNAL, ENTRY Credit I No L. Datel . General JOURNAL I Debit Dec.31 Sales Revenue Alc or $42,030 Reut Revenue Al Drl $300 To Salases swages Expense To Depreciation expense To vtilities Expense To Insurance expense To Rent Expense To Income Tax Expense To Retained Earnings All $31,600 $1,300 $ 4,2220 $1,400 1$ 6,000 & 2900 $4910 2. Dec.31 Retained Evenings TO Dividends Alc. Dr! $300 All | $300