Requirement

$1.$ Journalize the adjusting and closing entries of Winwood Production Company at December $31.$ There was only one adjustment to Service Revenue.

Solution:

Journal

DATE ACCOUNT TITLES DEBIT CREDIT

Adjusting Entries

Dec. $31$ Unearned Service Revenue

Service Revenue

$31$ Salary Expense

Salary Payable

$31$ Rent Expense

Prepaid Rent

$31$ Depreciation Expense

Accumulated Depreciation

$31$ Income Tax Expense

Income Tax Payable

Closing Entries

$31$ Service Revenue

Retained Earnings

$31$ Retained Earnings

Salary Expense

Rent Expense

Depreciation Expense

Income Tax Expense

$31$ Retained Earnings

Dividends