Problem #3: The following trial balance accounts were randomly arranged for Your Name Drugstore. Prepare the behind-the-scenes closing entries for the year ended December 31.

Your Name Drug Store

Trial Balance

December 31, (year)

Accounts Payable

12,000.00

Accounts Receivable

14,500.00

Accumulated Depreciation, Equipment

2,000.00

Accumulated Depreciation, Furniture

3,000.00

Advertising Expense

300.00

Automobile Expense

480.00

Bank Service Charge Expense

25.00

Cash

22,888.00

Depreciation Expense, Equipment

750.00

Depreciation Expense, Furniture

600.00

Entertainment Expense

200.00

Equipment

10,000.00

Furniture & Fixture

9,000.00

Insurance Expense

575.00

Interest Expense

290.00

Interest Income

175.00

Inventory

35,000.00

Legal Expense

2,500.00

Maintenance Expense

600.00

Medical Supplies

2,100.00

Medical Supplies Expense

290.00

Notes Payable

18,000.00

Office Supplies

850.00

Office Supplies Expense

1,575.00

Petty Cash

500.00

Postage Expense

420.00

Professional Fees Income

3,000.00

Rent Expense

2,500.00

Repairs Expense

120.00

Sales Discounts

2,000.00

Sales Returns & Allowances

1,000.00

Sales Revenue

40,000.00

Travel Expense

875.00

Unearned Revenue

5,000.00

Utilities Expense

782.00

Your Name, Capital

28,545.00

Your Name, Draw

1,000.00