Question

Please answer question C.

Problem 4-02A a-e (Part Level Submission) The adjusted trial balance columns of the worksheet for Ayayai Company are as follows. . 130 157 Ayayai Company Worksheet For the Year Ended December 31, 2019 Adjusted Trial Balance Account No. Account Titles Dr. Cr. 101 Cash 5,000 112 Accounts Receivable 10,500 126 Supplies 1,200 Prepaid Insurance 1,800 Equipment 26,500 158 Accumulated Depreciation-Equipment 5,000 200 Notes Payable 12,000 201 Accounts Payable 5,800 212 Salaries and Wages Payable 2,100 Interest Payable 500 311 Common Stock 9,500 320 Retained Earnings 3,000 Dividends 6,300 400 Service Revenue 61,100 610 Advertising Expense 8,000 631 Supplies Expense 3,700 Depreciation Expense 5,000 Insurance Expense 3,000 726 Salaries and Wages Expense 27,500 Interest Expense 500 Totals 99,000 99,000 230 332 711 722

Answer 1

Below is the answer for question (C): -

( c ) Prepare the Closing Entries
Date	Account titles and explanation		Debit	Credit
Dec. 31	Service revenue		61,100
	Income summary			61,100
(to close revenue account)
Dec. 31	Income summary		47,700
	Advertising Expense			8,000
	Supplies Expense			3,700
	Depreciation expense			5,000
	Insurance Expense			3,000
	Salaries and wages Expense			27,500
	Interest Expense			500
(to close expense accounts)
Dec. 31	income summary		13,400
	Retained earnings			13,400
(to close net income)
Dec. 31	Retained earnings		6,300
	Dividends			6,300
(to close dividends)