In: Finance
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, 2018.
Accounts Payable $ 602
Accounts Receivable 302
Accumulated Depreciation 902
Cash 302
Common Stock 202
Deferred Revenue 202
Depreciation Expense 302
Equipment 3,202
Income Tax Expense 302
Interest Revenue 102
Notes Payable (long-term) 202
Notes Payable (short-term) 502
Prepaid Rent 102
Rent Expense 402
Retained Earnings 1,502
Salaries and Wages Expense 2,202
Service Revenue 6,206
Supplies 502
Supplies Expense 202
Travel Expense 2,602
How do you prepare the closing entry required at September 30, 2018?
CLOSING ENTRIES--September 30, 2018: | ||
Income summary | $ 6,012 | |
Depreciation Expense | $ 302 | |
Income Tax Expense | $ 302 | |
Rent Expense | $ 402 | |
Salaries and Wages Expense | $ 2,202 | |
Supplies Expense | $ 202 | |
Travel Expense | $ 2,602 | |
[To close expense accounts] | ||
Service Revenue | $ 6,206 | |
Interest Revenue | $ 102 | |
Income summary | $ 6,308 | |
[To close revenue accounts] | ||
Income summary [6308-6012] | $ 296 | |
Retained earnings | $ 296 | |
[To close income summary to retained earnings] | ||
WORKSHEET: | ||
TRIAL BALANCE | ||
Debit | Credit | |
Accounts Payable | $ 602 | |
Accounts Receivable | $ 302 | |
Accumulated Depreciation | $ 902 | |
Cash | $ 302 | |
Common Stock | $ 202 | |
Deferred Revenue | $ 202 | |
Depreciation Expense | $ 302 | |
Equipment | $ 3,202 | |
Income Tax Expense | $ 302 | |
Interest Revenue | $ 102 | |
Notes Payable (long-term) | $ 202 | |
Notes Payable (short-term) | $ 502 | |
Prepaid Rent | $ 102 | |
Rent Expense | $ 402 | |
Retained Earnings | $ 1,502 | |
Salaries and Wages Expense | $ 2,202 | |
Service Revenue | $ 6,206 | |
Supplies | $ 502 | |
Supplies Expense | $ 202 | |
Travel Expense | $ 2,602 | |
Total | $ 10,422 | $ 10,422 |