LO7 Exercise 4-28 Closing Entries EXAMPLE 4-12 At the end of the year, the adjusted trial balance for Devonshire Corporation contains the follow. ing amounts for the income statement accounts. (The balance in each account is the normal bal. Show ance for that type of account.) how me Account Balance Advertising Fees Revenue Interest Revenue Wage and Salary Expense Utilities Expense Insurance Expense Depreciation Expense Interest Expense Income Tax Expense Dividends $58,500 2,700 14,300 12,500 7.300 16,250 2,600 3,300 2,000 Required 1. Prepare all necessary journal entries to close Devonshire Corporation's accounts at the end of the year. 2. Assume that the accountant for Devonshire forgets to record the closing entries. What will be the effect on net income for the following year? Explain your