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 $ 604 304 904 304 204 304 3,204 304 104 204 504 104 404 1,504 2,204 6,212 504 204 2,604 204

Explanation / Answer

Closing entries 1 Service revenue 6212 Interest revenue 104                Income summary 6316 2 Income summary 6024            Travel expense 2604             Salaries and wages expense 2204            Rent expense 404             Depreciation expense 304            Supplies expense 204            Income tax expense 304 3 Income summary 292               Retained earnings 292 Post closing trail balance Debit Credit Cash 304 Accounts receivable 304 Supplies 504 Prepaid rent 104 Equipment 3204 Accumulated depreciation - equipment 904 Accounts payable 604 Unearned revenue 204 Notes payable (short term) 504 Notes payable (long term ) 204 Common stock 204 Retained earnings 1796 Totals 4420 4420

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