The following balances appear on the books of Sarah Simon Enterprises: Retained Earnings, $ 27600 Dividends,

$6,000; Income Summary, $0; Service Revenue, $20,500; Salaries Expense,$6,600; Rent Expense $3,000; and Advertising Expense, 3,100. l accounts have normal balances.

Requirements 1, 2, and 3. The T-accounts have been set up for you. Insert each account's adjusted balance as given (denote as Adj.

Bal.)

at December 31. Do not enter an opening balance for the Income Summary account. Post the closing entries to the accounts, denoting posted amounts as Clos. Compute the ending balance of Retained Earnings.

First, with the exception of the Income Summary account, enter the adjusted balance, along with an "Adj. Bal." posting reference, for each account as given. Post all closing entries to the accounts, using "Clos." as the posting references. Calculate and enter the post-closing balance ("Bal.") of each account, including the ending balance of Retained Earnings. For any accounts with a zero balance after closing, enter a "0" on the normal side of the account. For Income Summary, calculate and enter the balance ("Bal.") before posting the entry to close out the account. Post the entry to close Income Summary account on the same line as you entered the balance prior to closing (the second line) and then show the post-closing balance ("Bal.") on the last (third) line of the account.

Retained Earnings					Service Revenue
Dividends					Salaries Expense
Income Summary					Rent Expense
					Advertising Expense