EC.9

EC.9 (LO 3, 5) (Closing and Reversing Entries) On December 31, the adjusted trial balance of Domino Inc. shows the following selected data: Accounts receivable $ 9,700 Service revenue $110,000 Interest expense 12,800 Interest payable 6,400 Analysis shows that adjusting entries had been made, and included above, for (1) $9,700 of services per- formed but not billed, and (2) $6,400 of accrued but unpaid interest. Instructions a. Prepare the closing entries for the temporary accounts at December 31. b. Prepare the reversing entries on January 1. c. Enter the adjusted trial balance data in the four accounts using T accounts, and post the entries in parts (a) and (b). d. Prepare the entries to record (1) collection of the service revenue on January 10, and (2) the $6,400 payment of interest due on January 15. e. Post the entries in part (d) to the temporary accounts. 102 E1 Adiuntingan Rouanning Intries A review of the accounts of Tucker and W