Question
Robert Evans owns a business, Beachside Realty that rents condominiums and furnishings. Below is the adjusted trial balance at December 31. Robert EvansAdjusted Trial BalanceDecember
Robert Evans owns a business, Beachside Realty that rents condominiums and furnishings. Below is the adjusted trial balance at December 31.
Robert EvansAdjusted Trial BalanceDecember 31Account No.Debit BalancesCredit BalancesCash111,500Accounts Receivable122,000Interest Receivable13100Prepaid Insurance141,600Notes Receivable (long-term)162,800Equipment1815,000Accumulated Depreciation193,000Accounts Payable212,400Accrued Expenses Payable223,920Income Taxes Payable232,700Unearned Rent Fees24500Robert Evans, Capital3113,700Robert Evans, Drawing322,000Rent Fees Earned4131,000Furniture Rental Revenue421,200Interest Revenue43100Wages Expense5119,000Depreciation Expense521,800Utilities Expense53320Insurance Expense54700Maintenance Expense559,000Income Tax Expense562,70058,52058,520Required:
Prepare the closing entry required to transfer the income or loss at the end of the period. Refer to the Chart of Accounts for exact wording of account titles.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started