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On December 31, the adjusted trial balance of Teal Mountain Inc. shows the following selected data: Accounts receivable $9,480 Service revenue $108,700 Interest expense
On December 31, the adjusted trial balance of Teal Mountain Inc. shows the following selected data: Accounts receivable $9,480 Service revenue $108,700 Interest expense 12,750 Interest payable 6,990 Analysis shows that adjusting entries had been made, and included above, for (1) $9,480 of services performed but not billed, and (2) $6,990 of accrued but unpaid interest. Prepare the closing entries for the temporary accounts at December 31. (Credit account titles are automatically indented when 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 Dec. 31 Service Revenue Income Summary (To close revenue account) Dec. 31 Income Summary Interest Expense (To close expense account) Debit 108700 12750 Credit 108700 12750
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