Problem

On December 31, after adjustments, The Taylor Family Farm’s ledger contains the following...

On December 31, after adjustments, The Taylor Family Farm’s ledger contains the following account balances.

101	Cash	$171,000 Dr.
111	Accounts Receivable	43,200 Dr.
121	Supplies	18,000 Dr.
131	Prepaid Rent	138,600 Dr.
141	Equipment	216,000 Dr.
142	Accumulated Depreciation—Equip.	5,400 Cr.
202	Accounts Payable	58,500 Cr.
301	James Taylor, Capital (12/1/2013)	344,700 Cr.
302	James Taylor, Drawing	21,600 Dr.
401	Fees Income	324,000 Cr.
511	Advertising Expense	19,800 Dr.
514	Depreciation Expense—Equip.	5,400 Dr.
517	Rent Expense	12,600 Dr.
519	Salaries Expense	64,800 Dr.
523	Utilities Expense	21,600 Dr.

INSTRUCTIONS

1. Record the balances in the ledger accounts as of December 31.
2. Journalize the closing entries in the general journal, page 4. Use account number 399 for the Income Summary Account
3. Post the closing entries to the general ledger accounts.

Analyze: List the accounts affected by closing entries for the month of December.