Problem 3-6A Preparing closing entries and financial statements LO P6, P7

The adjusted trial balance for Tybalt Construction as of December 31, 2019, follows.

O. Tybalt invested $5,500 cash in the business in exchange for common stock during year 2019. The December 31, 2018, credit balance of the Retained Earnings account was $123,400. Required: 1a. Prepare the income statement for the calendar-year 2019. 1b. Prepare the statement of retained earnings for the calendar-year 2019. 1c. Prepare the classified balance sheet at December 31, 2019. 2. Prepare the necessary closing entries at December 31, 2019.

These are the closing entries:

Record the entry to close the revenue account(s).

Record the entry to close the expense account(s).

Record the entry to close income summary.

Record the entry to close the dividends account.

No. Credit Debit $ 5,500 24,000 8,100 9,000 45,000 $ 22,500 TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2019 Account Title 101 Cash 104 Short-term investments 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 173 Building 174 Accumulated depreciation-Building 183 Land 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 233 Unearned professional fees 244. Current portion of long term note payable 156,000 52,000 80,910 15,500 2,700 3,100 2,500 1,100 7,900 6,000 63,500 5,500 123,400 11,300 104,000 18,000 3,000 2,100 251 Long-term notes payable 307 Common stock 318 Retained earnings 319 Dividends 401 Professional fees earned 406 Rent earned 407 Dividends earned 409 Interest earned 606 Depreciation expense-Building 612 Depreciation expense-Equipment 623 Wages expense 633 Interest expense 637 Insurance expense 640 Rent expense 652 Supplies expense 682 Postage expense 683 Property taxes expense 684 Repairs expense 688 Telephone expense 690 Utilities expense 11,440 6,750 25,500 3,100 8,700 10,200 6,600 3,500 4,400 6,100 3,100 3,600