Question

The following is Sunlight Co. year-end adjusted trial balance dated December 31, 2018. Sunlight Co. Adjusted Trial Balance at 31 December 2018 Debit Credit Cash $ 5,700 Accounts Receivable 4,500 Prepaid Insurance 2,100 Office Equipment 18,300 Accumulated Depreciation: Office Equipment $ 600 Accounts Payable 3,600 Capital Stock 15,300 Retained Earnings 2,700 Dividends 1,100 Revenue 21,750

Answer 1

1	Closing entries:
	Date	Account titles and explanation					Debit	Credit
	Dec 31.	Revenue					21750
		Income summary						21750
		(To close revenue accounts)
	Dec 31.	Income summary					12250
		Salaries expense						6600
		Utilities expense						1800
		Rent expense						2700
		Depreciation expense						600
		Income taxes expense						550
		(To close expense accounts)
	Dec 31.	Income summary					9500
		Retained earnings						9500
		(To close income summary accounts)
	Dec 31.	Retained earnings					1100
		Dividends						1100
		(To close dividend account)
2			Income statement
						$	$
	Revenue						21750
	Less:Expenses
	Salaries expense					6600
	Utilities expense					1800
	Rent expense					2700
	Depreciation expense					600
	Income taxes expense					550	12250
	Net income						9500
3			Statement of retained earnings
						$
	Beginning balance					2700
	Add: Net income					9500
						12200
	Less: dividends					1100
	Ending balance					11100
4			Balance sheet
						$	$
		Assets
	Current assets:
	Cash					5700
	Accounts receivable					4500
	Prepaid insurance					2100
	Total current assets						12300
	Property,plant and equipment:
	Office equipment					18300
	Less:Accumulated depreciation-Office equipment					600	17700
	Total assets						30000
		Liabilities and stockholder's equity
	Current liabilities:
	Accounts payable						3600
	Stockholder's equity:
	Capital stock					15300
	Retained earnings					11100
	Total stockholder's equity						26400
	Total liabilities and stockholder's equity						30000