Question

The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: 5 Credit Debit 11,000 155,000 5,500 30,000 350,000 2:04:19 Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation-equipment Accounts payable Notes payable-due in three months Salaries payable Interest payable Common stock Retained earnings Dividends Sales revenue Costs of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense Totals 130,000 35,000 35,000 4,50 12,000 225,000 61,000 10,500 450,000 205,000 125,000 20,000 35,000 2,500 3,000 952,500 952,500 Required Prepare the closing entries for China Tea Company for the year ended December 31, 2021. (If no entry is required fo transaction/event, select "No journal entry required" in the first account field.) View transaction list w

Answer 1

Date	General Journal	Debit	Credit
December 31	Sales revenue	$450,000
	Income Summary		$450,000
	( To close sales revenue)
December 31	Income summary	$390,500
	Cost of goods sold		$205,000
	Salaries expense		$125,000
	Rent expense		$20,000
	Depreciation expense		$35,000
	Interest expense		$2,500
	Advertisement expense		$3,000
	( To close expense)
December 31	Income Summary	$10,500
	Dividends		$10,500
	( To close Dividend)