The adjusted trial balance for China Tea Company at December 31, 2018 is present

Question

The adjusted trial balance for China Tea Company at December 31, 2018 is presented below. Accounts Cash Accounts receivable Prepaid rent Supplies $ 15,000 166,000 9,000 28,000 390,000 Accumulated depreciation Accounts payable Salaries payable Interest payable Notes payable due in two years Common stock Retained earnings Dividends Service revenue Salaries expense Advertising expense Rent expense Depreciation expense $134,000 18,000 3,400 1,200 28,000 180,000 152,900 28,000 470,000 182,000 76,000 17.000 33,000 2,500 41000 Utilities expense Totals $987 500 $987 500

Explanation / Answer

Record the entry to close the service revenue account Event General Journal Debit Credit 1 Service Revenue $470,000 To Income Sumary 470000 (Being journal entry to close the service revenue account) 2 Record the entry to close the expense account Income Summary $351,500 To Salaries Expense 182000 To Advertising Expense 76000 To Rent Expense 17000 To Depreciation Expense 33000 To Interest Expense 2500 To Utilities 41000 (Being journal entry to close the expenses) 3 Record the entry to close the dividends account Retained Earnings $28,000 To Cash $28,000 (Being journal entry to close the dividend)

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