The Sky Blue Corporation has the following adjusted trial balance at December 31

Question

The Sky Blue Corporation has the following adjusted trial balance at December 31. Credit Cash Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Unearned 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 $ 1,310 2,800 3,100 3,800 16,000 4,200 6,220 1,400 3,700 760 3,200 1,320 49,230 380 23,200 2,100 5,020 2,200 6,800 3,700 Total $70,410 $70,410 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.)

Explanation / Answer

Closing entries :

date accounts & explanation debit credit Sales revenue a/c 49230 Rent revenue a/c 380 Income summary a/c 49610 (To record close of revenue a/c) Income summary a/c 43020 Salaries and wages expenses a/c 23200 Depreciation expenses 2100 Utilities expenses 5020 Insurance expenses 2200 Rent expenses a/c 6800 Income tax expenses a/c 3700 (To record close of expenses a/c) Income summary a/c 6590 Retained earnings a/c 6590 (To record close of income summary a/c) Retained earnings a/c 380 Dividend a/c 380 (To record close of dividend account)

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