To "close the books for the year, review Principles of Accounting, Volume 1: Financial Accounting, Chapter 4, The Adjustment Process. Specifically, refer to the 10-column worksheet on p. 248 for the conceptual layout. Following is an 8-column format that can serve the same purpose. Use whichever makes more sense to you. Prepare the adjusting and closing entries for 2021 based on the budgeted income statement and Cash budget from prior week. Fixed assets have no salvage value over a 10 year period. Adjusting Entries Closing Entries Debit Credit Ending Bal. Debit Credit Debit Credit $2,000 0 Beginning Bal. 12.31.20 (Trial Balance) Debit Credit 5,909 2,000 210,000 121,927 2,400,000 200,000 60,000 5,000 53,545 Worksheet Cash Savings Account Accounts Receivable Inventory Fixed Assets-Mfg Fixed Assets-SG&A Accum Depreciation-Mfg Accum Depreciation-SG&A Accounts Payable Loans Payable Interest Payable Income Tax Payable (Benefit) Capital Stock Additional Paid in Capital Retained Earnings Sales 480,000 121,927 53,545 110,831 110,831 6,387 300,000 2,500,000 14,904 COGS SG&A Expenses Interest Expense Income Tax Expense Totals $ 2,939,836 $ 2,939,836 $ 2,580,000 ######## ######## ######## To "close the books for the year, review Principles of Accounting, Volume 1: Financial Accounting, Chapter 4, The Adjustment Process. Specifically, refer to the 10-column worksheet on p. 248 for the conceptual layout. Following is an 8-column format that can serve the same purpose. Use whichever makes more sense to you. Prepare the adjusting and closing entries for 2021 based on the budgeted income statement and Cash budget from prior week. Fixed assets have no salvage value over a 10 year period. Adjusting Entries Closing Entries Debit Credit Ending Bal. Debit Credit Debit Credit $2,000 0 Beginning Bal. 12.31.20 (Trial Balance) Debit Credit 5,909 2,000 210,000 121,927 2,400,000 200,000 60,000 5,000 53,545 Worksheet Cash Savings Account Accounts Receivable Inventory Fixed Assets-Mfg Fixed Assets-SG&A Accum Depreciation-Mfg Accum Depreciation-SG&A Accounts Payable Loans Payable Interest Payable Income Tax Payable (Benefit) Capital Stock Additional Paid in Capital Retained Earnings Sales 480,000 121,927 53,545 110,831 110,831 6,387 300,000 2,500,000 14,904 COGS SG&A Expenses Interest Expense Income Tax Expense Totals $ 2,939,836 $ 2,939,836 $ 2,580,000 ######## ######## ########