158 Chapter 4: Completing the Accounting Cycle LO 1. 2 Closing Entries Using T Accomts and Preparation of Financial Statements V 3: Net income: $103,150 P2. Carlton Tennis Club's adjusted trial balance at the end of its scal year follows. n/ 3: Total as sets: $621800 Carlton Tennis Club Adjusted Trial Balance Ju I1: 30. 201 4 Cash 262 00 Prepaid Advertising 9,600 Supplies 1 .2 00 Land 100,000 Building 645 ,2 00 Accumulated DepreciationBuilding 260.000 Equipment 156,000 Accumulated DepreciationEquipment 50,400 Accounts Payable 73,000 Wages Payable 9.000 PropertyTaxes Payable 22,500 Uneamed RevenueLocker Fees 3,000 J. Kojas, Capital 4?1 ,1 50 J. Koias. 'Mthd rawals 54,000 Revenue from Court Fees 673,1 00 Revenue from Locker Fees 9.600 Wages Expense 351 ,000 Maintenance Expense 51 .600 Advertising Expense 39.7 50 Utilities Expense 64,300 Supplies Expense 6,000 Depreciation ExpenseBuilding 30,000 Depreciation ExpenseEquipment 12 .000 Property Taxes Expense 22,5 00 Miscellaneous Expense 6,900 1. 576.7 50 1.576,? 50 REQUIRED 1. Prepare T accounts and enter the balances for }. Kojas, Capital; I. Kojas, Withdraw- als; Income Summary, and all revenue and expense accounts. 2. Enter the four required closing entries in the T accounts, labeling le components a {credit balances}, b {debit balances), 5 {Income Summary), and d (wimdrawals), as appropriate. 3. Prepare an income statement, a statement of owner's equity, and a balance sheet for Carlton Tennis Club. 4. CONCEPT D Explain why it is necessary to make closing entries at the end of an accounting period