Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjusting entries. Trial Balance, December 31 of the Current Year Before After Adjusting Entries Adjustments Debit Adjusting Entries Debit Items Debit Credit Credit a. Cash 13,500 13,500 b. Accounts receivable c. Prepaid insurance. 850 1,820 720 168,280 d. Equipment 168,280 e. Accumulated depreciation, equipment 42,100 f. Income taxes payable 48,100 1,155 g. Common stock and additional paid-in capital 112,000 112,000 h. Retained earnings, January 1 19,600 19,600 i. Service revenue 64,400 66,220 j. Salary expense 55,470 55,470 k. Depreciation expense 6,000 1. Insurance expense 130 1,155 m. Income tax expense 238,100 238,100 247,075 247,075 P4-6 Part 5 5. Record the closing entry at December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Credit P4-6 Part 5 5 5. Record the closing entry at December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record closing entry to transfer revenues and expenses to retained earnings. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Clear entry View general journal 10 points eBook Print References Record entry