Starbooks Corporation provides an online bookstore for electronic books. The fol

Question

Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2015 Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Common Stock Depreciation Expense Equipment Income Tax Expense Interest Revenue Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Rent Expense Retained Earnings Salaries and Wages Expense Service Revenue Supplies Supplies Expense Travel Expense Unearned Revenue $608 308 908 308 208 308 3,208 308 108 208 508 108 408 1,508 2,208 6,224 508 208 2,608 208

Explanation / Answer

1) Closing entry :

Post closing trial balance :

Date accounts & explanation debit credit Service revenue 6224 Interest revenue 108 Rent expense 408 Depreciation expense 308 Salaries and wages expense 2208 Supplies expense 208 Income tax expense 308 Travel expense 2608 Income summary 284 (To close revenue and expense account)

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