Question

Adjusted Trial Balance December 31st 2019 Debit Credit Cash 126587 Accounts receivable 13500 Allowance for uncollectible accounts 405 Interest receivable 75 Supplies Prepaid insurance inventory Notes receivable 1800 5500 5328 15000 Buildings Gain 62000 2300 Accumulated depreciation Accounts payable Deferred revenue 200 3200 3480 Salaries payable Income tax payable Warranty liability Notes payable 1200 3700 450 113670 Common stock 96000 Dividends 1600 Service revenue 7830 Sales revenue 36000 Sales discounts 150 75 Interest revenue Bad debt expense Cost of goods sold Depreciation expense Income tax expense Insurance expense Interest expense Salaries expense Supplies expense Warranty expense 405 17280 500 3700 500 575 5200 1400 450 $265030 $265030 Total

Answer 1

Closing entries:

Date	Account title and explanation	Debit	Credit
Dec.31,2019	Service revenue	3,480
	Sales revenue	36,870
	Interest revenue	75
	Income summary		40,425
	[To close revenue accounts]
Dec.31,2019	Income summary	30,160
	Sales discount		150
	Bad debt expense		405
	Cost of goods sold		17,280
	Depreciation expense		500
	Income tax expense		3,700
	Insurance expense		500
	Interest expense		575
	Salaries expense		5,200
	Supplies expense		1,400
	Warranty Expense		450
	[To close expenses account]
Dec.31,2019	Income summary [40,425-30,160]	10,265
	Retained earnings		10,265
	[To close income summary account]
Dec.31,2019	Retained earnings	1,600
	Dividends		1,600
	[To close dividends account]

Closing Trial Balance:

Closing Trial balance
December 31st, 2019
Account Title	Debit	Credit
Cash	126,587
Accounts receivable	13,500
Allowance for Uncollectible account		405
Interest receivable	75
Supplies	1,800
Prepaid insurance	5,500
Inventory	5,328
Notes receivable	15,000
Building	62,000
Gain		2,300
Accumulated depreciation		200
Accounts payable		3,200
Deferred revenue	0
Salaries payable		1,200
Income taxes payable		3,700
Warranty liability		450
Notes payable		113,670
Common stock		96,000
Retained earnings		8,665
Total	229,790	229,790