On August 1, 2021, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Lily Ltd. Accounts payable $2,080 Accounts receivable 4,520 Accumulated depreciation-equipment 2,040 Cash 6,320 Common shares 11,600 Deferred revenue 1,240 Equipment 10,200 Interest receivable 20 Note receivable, due October 31, 2021 4,000 Retained earnings 7,740 Salaries payable 1,360 Supplies 1,000 During August, the following summary transactions were completed. Aug. 1 Paid $380 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. (Hint: Use the Prepaid Advertising account.) 3 Paid August rent $400. (Hint: Use the Prepaid Rent account.) 6 Received $3,510 cash from customers in payment of accounts. 10 Paid $3,340 for salaries due employees, of which $1,980 is for August and $1,360 is for July salaries payable. 13 Received $3,780 cash for services performed in August. 15 Purchased additional equipment on account $1.850. 17 Paid creditors $1,850 of accounts payable due. 22 Purchased supplies on account $730. 24 Paid salaries $2,900. 27 Performed services worth $4,330 on account and billed customers. 29 Received $720 from customers for services to be provided in the future. 225 31 Declared and paid a $490 dividend. Question 1 of 1 Prepare the closing journal entries, assuming Lily closes its books monthly. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Aug. 1. Service Revenue 31 Interest Income Income Summary (To close revenue accounts) Aug. 2. Income Summary 31 Salaries Expense Rent Expense Supplies Expense Depreciation Expense Debit 8970 20 8114 Income Summary Credit 8990 6270 400 750 204 Supplies Expense Depreciation Expense Income Tax Expense Advertising Expense (To close expense accounts) Aug. Income Summary 31 Aug. Retained Earnings (To close net income/loss) Retained Earnings 31 Dividends Declared (To transfer dividends declared) 876 490 750 204 300 190 876 490 Prepaid Advertising Aug. 1 380 Aug. 31 Adj. 190 Aug. 31 Bal. 190 Supplies Aug. 1 Bal. 1,000 Aug. 31 Adj. 750 Aug. 22 730 Aug. 31 Bal. 980 Prepaid Rent 400 Aug 31 Adj. 400 Aug. 3 Aug. 31 Bal. Note Receivable Aug. 1 Bal. 4,000 Aug. 31 Bal. 4,000 Post the closing journal entries and calculate and enter balances. Assume Tobique closes its books monthly. (Post entries in the order of journal entries presented in the previous part. If the ending balance is O select Bal for the date and enter O for the normal balance for that account.) Cash Aug. 1 Bal. 6,320 Aug. 1 380 Aug. 6 3,510 Aug. 3 400 Aug. 13 3,780 Aug. 10 3,340 Aug. 29 720 Aug. 17 1,850 Aug. 24 2,900 Aug 31 490 Aug. 31 Bal. 4.970 Accounts Receivable Aug. 1 Bal. 4,520 Aug. 6 3,510 Aug. 27 4,330 Aug. 31 Bal. 5,340 Aug. 1 Bal. Aug. 31 Adj. Interest Receivable 20 20 Aug. 31 Bal. 40 Equipment Aug. 1 Bal. 10,200 Aug. 15 1,850 Aug. 31 Bal. 12,050 Accumulated Depreciation - Equipment Aug, 1 Bal. 2,040 Aug. 31 Adj. 204 Aug. 31 Bal. 2,244 Accounts Payable Aug. 17 1,850 Aug. 1 Bal. 2,080 Aug. 15 1,850 Aug. 22 730 Aug. 31 Bal. 2,810 Salaries Payable Aug. 10 1,360 Aug. 1 Bal. 1,360 Aug. 31 Adj. 1,390 Aug. 31 Bal. 1,390 Income Tax Payable Aug. 31 Adj. 300 Aug. 31 Bal. 300 Aug. 31 Adj. Deferred Revenue 860 Aug. 1 Bal. 1,240 Aug. 29 720 Aug. 31 Bal. 1.100 Common Shares Aug. 1 Bal. 11,600 Aug. 31 Bal. 11,600 Retained Earnings Aug. 1 Bal. 7,740 Aug. 31 Dividend Declared 490 Service Revenue Aug. 13 3,780 Aug. 27 4,330 Aug. 31 Adj. 860 Aug. 31 Bal. 8,970 Interest Income Aug. 31 Adj. 20 Aug. 10 Salaries Expense 1,980 Aug. 24 2,900 Aug. 31 Adj. 1,390 Aug. 31 Bal. 6,270 Aug. 31 Adj. Rent Expense 400 Aug. 31 Adj. Supplies Expense 750 Aug. 31 Adj. Depreciation Expense 204 Aug. 31 Adj. Income Tax Expense 300 Aug. 31 Adj. Advertising Expense 190 Income Summary >