Question

Required information [The following information applies to the questions displayed below] Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2018. Accounts Payable $ 595 Accounts Receivable 295 Accumulated Depreciation 895 Cash 295 Common Stock 195 Deferred Revenue Depreciation Expense Equipment Income Tax Expense Interest Revenue Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Rent Expense Retained Earnings Salaries and Wages Expense 195 295 3,195 295 95 195 495 95 395 1,495 2,195 6,185 Service Revenue Supplies Supplies Expense Travel Expense 495 195 2,595 Requirod:

all help appreciated

Answer 1

1-a

STARBROOKS CORPORATION
Adjusted Trial Balance
For the year ended September 30,2018
Account titles	Debit	Credit
Cash	$295
Accounts receivable	$295
Supplies	$495
Prepaid rent	$95
Equipment	$3,195
Accumulated depreciation		$895
Accounts payable		$595
Deferred revenue		$195
Notes payable (short-term)		$495
Notes payable (long-term)		$195
Common stock		$195
Retained earnings		$1,495
Service revenue		$6,185
Interest revenue		$95
Travel expense	$2,595
Salaries and wages expense	$2,195
Rent expense	$395
Depreciation expense	$295
Supplies expense	$195
Income tax expense	$295
Total	$10,345	$10,345

1-b Answer is No.

Because retained earnings balance is increased by $310 (net income)

Closing entries:

Date	Account title	Debit	Credit
Sept 30,2018	Service revenue	$6,185
	Interest revenue	$95
	Income summary		$6,280
	[To close revenue accounts]
Sept 30,2018	Income summary	$5,970
	Travel expense		$2,595
	Salaries and wages expense		$2,195
	Rent expense		$395
	Depreciation expense		$295
	Supplies expense		$195
	Income tax expense		$295
	[To close expenses accounts]
Sept 30,2018	Income summary (6,280-5,970)	$310
	Retained earnings		$310
	[To close income summary account]

Closing trial balance:

STARBROOKS CORPORATION
Closing Trial balance
For the year ended September 30,2018
Account titles	Debit	Credit
Cash	$295
Accounts receivable	$295
Supplies	$495
Prepaid rent	$95
Equipment	$3,195
Accumulated depreciation		$895
Accounts payable		$595
Deferred revenue		$195
Notes payable (short-term)		$495
Notes payable (long-term)		$195
Common stock		$195
Retained earnings (1,495+310)		$1,805
Total	$4,375	$4,375