E3-29A. (Learning Objectives 3, 5: Identifying and recording adjusting and closing entries)

The unadjusted trial balance and Income Statement amounts from the December 31 adjusted trial balance of Tape Production Company follow.

Requirement 1. Journalize the adjusting and closing entries of Tape Production Company at December 31.
There was only one adjustment to Service Revenue.

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A1 5 Equipment 1 2 Account 3 Cash 4 Prepaid rent 7 Accounts payable 8 Salary payable B Tape Production Company D Unadjusted Trial Balance From the Adjusted Trial Balance 14,800 1,200 45,000 6 Accumulated depreciation 3,300 5,300 9 Unearned service revenue 9,400 10 Income tax payable 11 Notes payable, long term 13,500 12 Share capital 8,600 13 Retained earnings 14,200 14 Dividends 1,300 15 Service revenue 13,600 20,400 16 Salary expense 4,600 5,200 17 Rent expense 1,000 1,400 18 Depreciation expense 500 19 Income tax expense 1,000 20 Total 67,900 67,900 8,100 20,400 21 F