Question

Required information The following information applies to the questions displayed below.] The Sky Blue Corporation has the following adjusted trial balance at December 31 Debit Credit S 1,320 2,900 3,200 3,900 16,500 Cash Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Dividends Sales Revenue Rent Revenue Salaries and Wages Expense Depreciation Expense Utilities Expense Insurance Expense Rent Expense Income Tax Expense $ 4,400 6,320 1,450 3,800 780 3,300 1,360 390 50,130 390 23,400 2,200 5,120 2,300 6,900 3,800 Total $71,930 $71,930 Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Closing entries are as prepared below:

Date	Particulars	L.F	Debit	Credit
20XX			$	$
Dec-31	Sales Revenue		50,130
	Rent Revenue		390
	Income summary			50,520
	(For revenue closing balances recorded)
Dec-31	Income summary		43,700
	Salaries and Wages Expense			23,400
	Depreciation Expense			2,200
	Utilities Expemnse			5,100
	Insurance Expense			2,300
	Rent Expense			6,900
	Income tax expense			3,800
	(For expenses closing balances recorded)
Dec-31	Income summary		6,820
	Retained Earnings			6,820
	(For income summary close to retained earnings)
Dec-31	Retained Earnings		390
	Dividend			390
	(For Dividend closed to retained earnings)