Question

CALCULATOR FULL SCREEN PRINTER VERSE Exercise 4-21 (Part Level Submission) Selected year-end account balances from the adjusted trial balance as of December 31, 2022, for Indigo Corporation is provided below. Credit Debit $65,340 23,670 11,880 191,520 81,990 Accounts Receivable Dividends Depreciation Expense Equipment Salaries and Wages Expense Accounts Payable Accumulated Depreciation-Equipment Unearned Rent Revenue Service Revenue Rent Revenue Rent Expense Retained Earnings Supplies Expense $47,700 103,320 20,610 165,420 5,580 3,240 55,620 1,260 (a) Prepare closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry "No Entry" for the account ttles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 y Policy 1 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc.

Answer 1

CLOSING ENTRIES
Date	Account title and explanation	Debit	Credit
Dec 31 2022	Service revenue	$ 165,420
	Rent revenue	$ 5,580
	Income summary		$ 171,000
	[To close revenue accounts]
Dec 31 2022	Income summary account	$ 98,370
	Depreciation expense		$ 11,880
	Salaries and wages expense		$ 81,990
	Rent expense		$ 3,240
	Supplies expense		$ 1,260
	[To close expenses accounts]
Dec 31 2022	Income summary [171000 - 98370]	$ 72,630
	Retained earnings		$ 72,630
	[To close income summary account]
Dec 31 2022	Retained earnings	$ 23,670
	Dividends		$ 23,670
	[To close dividends]