Hello,

Please review the Journal entry that I completed, please advise and correct if necessary. Thank you

The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:

	Debit			Credit
Cash		11,000
Accounts receivable		155,000
Prepaid rent		5,500
Inventory		30,000
Equipment		350,000
Accumulated depreciationequipment					130,000
Accounts payable					35,000
Notes payabledue in three months					35,000
Salaries payable					4,500
Interest payable					12,000
Common stock					225,000
Retained earnings					61,000
Dividends		10,500
Sales revenue					450,000
Costs of goods sold		205,000
Salaries expense		125,000
Rent expense		20,000
Depreciation expense		35,000
Interest expense		2,500
Advertising expense		3,000
Totals		952,500			952,500

Required: Prepare the closing entries for China Tea Company for the year ended December 31, 2021

• Record the entry to close the revenue accounts.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1	Sales revenue	450,000
	Cash		450,000

• Record the entry to close the expense accounts.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
2	Cash	185,000
	Salaries expense		125,000
	Rent expense		20,000
	Advertising expense		3,000
	Depreciation expense		35,000
	Interest expense		2,500

• Record the entry to close the dividends account.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
3	Retained earnings	10,500
	Dividends		10,500