QUESTION:

Record closing entry to transfer revenues and expenses to retained earnings.

P4-7 (Algo) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share L04-1, 4-2, 4-4 (The following information applies to the questions displayed below.) Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Tunstall, Inc. Unadjusted Trial Balance for the Year Ended December 31 Credit Debit 47,600 10,500 470 769 16,800 8,800 10,660 2,370 Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated depreciation Other assets Accounts payable Wages payable Income taxes payable Notes payable, long-term Common stock (5,400 shares outstanding) Additional paid-in capital Retained earnings Service revenue Wages expense Remaining expenses (not detailed; excludes income tax) Income tax expense Totals 12,000 1,906 17,154 5,300 88,730 16,200 33,270 136,260 136,260 Data not yet recorded at December 31 included: a. The supplies count on December 31 reflected $230 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $760. c. Depreciation expense for the current year, $4,100. d. Wages earned by employees not yet paid on December 31, $700. e. Income tax expense, $5,080