E3-42B. (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 Cassette Production Company follow.

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

Transcribed Image Text:

1 A1 Cassette Production Company D 2 Account Unadjusted Trial Balance From the Adjusted Trial Balance 3 Cash 14,500 4 Prepaid rent 1,200 5 Equipment 46,000 6 Accumulated depreciation 3,300 7 Accounts payable 5,100 8 Salary payable 9 Unearned service revenue 9,400 10 Income tax payable 11 Notes payable, long term 13,500 12 Share capital 8,500 13 Retained earnings 15,000 14 Dividends 1,100 15 Service revenue 13,300 19,600 16 Salary expense 4,500 5,200 17 Rent expense 800 1,500 18 Depreciation expense 600 19 Income tax expense 900 20 Total 68,100 68,100 8,200 19,600 21