Salinas Trailer Rental, Inc., rents small trailers by the day for local moving jobs. Its adjusted trial balance at the end of the current fiscal year follows.

Salinas Trailer Rental, Inc.
Adjusted Trial Balance
June 30, 2014
Cash	1,384
Accounts Receivable	1,944
Supplies	238
Prepaid Insurance	720
Trailers	24,000
Accumulated Depreciation - Trailers		14,400
Accounts Payable		542
Wages Payable		400
Common Stock		10,000
Retained Earnings		1,388
Dividends	14,400
Trailer Rentals Revenue		91,092
Wages Expense	46,800
Insurance Expense	1,440
Supplies Expense	532
Depreciation Expense - Trailers	4,800
Other Expenses	21,564
	117,822	117,822

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1. From the information given, record closing entries. For a compound transaction, if an amount box does not require an entry, leave it blank.

2014 June 30	Accumulated Depreciation-Trailers Cash Depreciation Expense-Trailers Income Summary Trailer Rentals Revenue Correct 2 of Item 1	Correct 3 of Item 1
	Depreciation Expense-Trailers Income Summary Insurance Expense Retained Earnings Trailer Rentals Revenue Correct 4 of Item 1	Correct 5 of Item 1
	To close the revenue account
June 30	Depreciation Expense-Trailers Income Summary Insurance Expense Retained Earnings Trailer Rentals Revenue Correct 8 of Item 1	Correct 9 of Item 1	Correct 10 of Item 1
	Cash Income Summary Retained Earnings Wages Expense Wages Payable Correct 11 of Item 1	Correct 12 of Item 1	Correct 13 of Item 1
	Cash Income Summary Insurance Expense Prepaid Insurance Retained Earnings Correct 14 of Item 1	Correct 15 of Item 1	Correct 16 of Item 1
	Cash Income Summary Retained Earnings Supplies Expense Supplies Correct 17 of Item 1	Correct 18 of Item 1	Correct 19 of Item 1
	Accumulated Depreciation-Trailers Dividends Depreciation Expense-Trailers Income Summary Trailer Rentals Revenue Correct 20 of Item 1	Correct 21 of Item 1	Correct 22 of Item 1
	Cash Income Summary Other Expenses Retained Earnings Wages Payable Correct 23 of Item 1	Correct 24 of Item 1	Correct 25 of Item 1
	To close the expense accounts
June 30	Accumulated Depreciation-Trailers Dividends Income Summary Retained Earnings Trailer Rentals Revenue Correct 28 of Item 1	Correct 29 of Item 1
	Accumulated Depreciation-Trailers Depreciation Expense-Trailers Dividends Retained Earnings Trailer Rentals Revenue Correct 30 of Item 1	Correct 31 of Item 1
	To close the Income Summary account
June 30	Accumulated Depreciation-Trailers Depreciation Expense-Trailers Dividends Retained Earnings Trailer Rentals Revenue Correct 34 of Item 1	Correct 35 of Item 1
	Accumulated Depreciation-Trailers Depreciation Expense-Trailers Dividends Trailer Rentals Revenue Wages Expense Correct 36 of Item 1	Correct 37 of Item 1
	To close the Dividends account

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2. If closing entries were not prepared at the end of the accounting period, what problems would result in the next accounting period?

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Correct 1 of Item 2