Question

The adjusted trial balance for Blossom Company, owned by D. Blossom, are as follows:

BLOSSOM COMPANY Adjusted Trial Balance December 31, 2021
				Adjusted Trial Balance
Account No.		Account Titles		Dr.		Cr.
101		Cash		$4,000
112		Accounts receivable		9,500
126		Supplies		200
130		Prepaid insurance		700
157		Equipment		25,700
158		Accumulated depreciation—equipment				$4,300
200		Notes payable				13,700
201		Accounts payable				4,800
212		Salaries payable				1,100
230		Interest payable				470
301		D. Blossom, capital				5,200
306		D. Blossom, drawings		5,700
400		Service revenue				59,700
610		Advertising expense		7,100
631		Supplies expense		2,700
711		Depreciation expense		4,300
722		Insurance expense		2,200
726		Salaries expense		26,700
905		Interest expense		470
		Totals		$89,270		$89,270

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.

Prepare closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.

Use T accounts to post the closing entries and calculate the balance in each account. Income Summary is account No. 350. (Ignore the accounts not affected by the closing entries.)  (Post entries in the order of journal entries presented in the previous part. For balances ending in 0 select bal for the date and 0 for the amount for the normal balance of the account.)

Answer 1

Closing Entries:

Date	Account title and Explanation	Debit	Credit
December 31,2012	Service revenue	59,700
	Income summary		59,700
	[To close revenue accounts]
December 31,2012	Income Summary	43,470
	Advertising expense		7,100
	Supplies expense		2,700
	Depreciation expense		4,300
	Insurance expense		2,200
	Salaries expense		26,700
	Interest expense		470
	[To close expenses accounts]
December 31,2012	Income Summary [59,700-43,470]	16,230
	D. Blossom, capital		16,230
	[To close income summary account]
December 31,2012	D. Blossom, capital	5,700
	D. Blossom, drawings		5,700
	[To close drawings account]