Question

E4-25 (similar to) i fion Help x Data Table Michael's Bowling Alley's adjusted trial balance as of December 31, 2018, is presented below: (Click the icon to view the adjusted trial balance.) Read the requirements. Requirement 1. Prepare the closing entries for Michael's Bowling Alley (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by closing revenues. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (1) Michael's Bowling Alley Adjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit Cash $ 17,000 Accounts Receivable 2,400 Office Supplies 500 Prepaid Insurance 2,500 Land 28,000 Building 120,000 Accumulated Depreciation—Building $ 5,600 Equipment 44,000 Accumulated Depreciation-Equipment 13,000 Accounts Payable 5,000 Utilities Payable 600 Salaries Payable 3,300 Unearned Revenue 1,500

Answer 1

Closing Entries:

	Date	Account title and Explanation	Debit	Credit
1	Dec 31,2018	Service revenue	$120,000
		Income Summary		$120,000
		[To close revenue accounts]
2	Dec 31,2018	Income Summary	$79,850
		Insurance Expense		$25,000
		Salaries expense		$29,000
		Supplies expense		$2,000
		Utilities expense		$19,000
		Depreciation Expense - Equipment		$4,500
		Depreciation Expense - Building		$350
		[To close expenses accounts]
3	Dec 31,2018	Income summary [120,000-79,850]	$40,150
		Retained earnings		$40,150
		[To close income summary account]
4	Dec 31,2018	Retained earnings	$35,000
		Dividends		$35,000
		[To close dividends account]