Question
The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Debit Credit Cash 11,500 Accounts receivable 160,000 Prepaid rent 6,000
The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Debit Credit Cash 11,500 Accounts receivable 160,000 Prepaid rent 6,000 Inventory 35,000 Equipment 400,000 Accumulated depreciationequipment 135,000 Accounts payable 40,000 Notes payabledue in three months 40,000 Salaries payable 5,000 Interest payable 15,000 Common stock 250,000 Retained earnings 72,000 Dividends 13,000 Sales revenue 500,000 Costs of goods sold 230,000 Salaries expense 130,000 Rent expense 25,000 Depreciation expense 40,000 Interest expense 3,000 Advertising expense 3,500 Totals 1,057,000 1,057,000
Required: Prepare the closing entries for China Tea Company for the year ended December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record the entry to close the revenue accounts
Record the entry to close the expense accounts
Record the entry to close the dividends accounts
(INCOME SUMMARY is not a drop down option for the journal entries) So that is not the correct option for these questions.
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