1 Closing Journal Entries. Following is a list of accounts (in random order) from the adjusted trial balance of Jackson Corp. at December 31. Assume that each item has its normal debit or credit balance. Required: Prepare closing entries for the year. (Remember that you only close out certain accounts.) Accounts payable 1,800 Accounts receivable 68,240 Accumulated depreciation: equipment 100,000 Advertising expense 3,000 Capital stock 50,000 Cash 70,400 Depreciation expense: equipment 24,000 Dividends (declared) 20,000 Equipment 120,000 Fees earned 199,060 Income taxes expense 15,200 Income taxes payable 4,340 Insurance expense 14,400 Interest expense 500 Interest payable 500 Notes payable 10,000 Office supplies 760 Office supplies expense 3,000 Prepaid rent 7,200 Rent expense 23,200 Repairs expense 9,600 Retained earnings 60,000 Salaries expense 56,800 Salaries payable 4,200 Unearned revenue 7,600 Unexpired insurance 1,200