Check your knowledge! If you complete all parts with a 95% score, you will unlock access to all activities and can proceed to prove your mastery. You can attempt this as many times as you want. Your work will be saved as you work through each part. Using the information from the Adjusted Trial Balance, journalize the closing entries for the end of the month. Date Accounts and Explanation Debit Credit SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Balance Debit Credit Account Title Cash 15,700 Accounts Receivable 8,700 Date Accounts and Explanation Debit Credit Office Supplies 200 Prepaid Rent 10,500 Furniture 18,400 Accumulated Depreciation-- Furniture 6,300 Accounts Payable 2,100 Salaries Payable 500 Interest Payable 300 Unearned Revenue 5,200 Date Accounts and Explanation Debit Credit Notes Payable 7,300 Common Stock 10,300 Retained Earnings 10,500 Dividends 26,700 Service Revenue 47,600 Date Accounts and Explanation Debit Credit Depreciation Expense- Furniture 2,100 Interest Expense 300 Rent Expense 3,100 Salaries Expense 3,600 Supplies Expense 800 Total 90,100 90,100 T-accounts have been opened using the balances from the adjusted trial balance. Post the closing entries to the t-accounts and calculate ending balances for each account. For accounts that have a zero balance, enter the zero on the normal balance side. Use the acronym for closing entries as post references and include Bal. references where appropriate. For the Income Summary account, calculate and enter the Balance (Bal.) before posting the entry to close out the account. Date Accounts and Explanation Debit Credit Date Accounts and Explanation Debit Credit Dec. 31 Service Revenue 50,000 Dec. 31 Income Summary 23,000 Income Summary 50,000 Retained Earnings 23,000 To close Revenue To close Income Summary Date Accounts and Explanation Debit Credit Date Accounts and Explanation Credit Dec. 31 Retained Earnings 23,000 Dec. 31 Income Summary 27,000 Dividends 23,000 Depreciation Expense--Furniture 4,000 To close Dividends Interest Expense 6,000 Rent Expense 2,000 Salaries Expense 5,000 Supplies Expense 10,000 To close Expenses Depreciation Expense--Furniture Rent Expense Adj. Bal. Adj. Bal. 4,000 4,000 C Adji Bal. Adj. Bal. 2.000 2,000 Dividends Service Revenue Dividends 23,000 Adj. Bal. Adj. Bal. 23,000 n v 50,000 Adj. Ba Interest Expense Salaries Expense Adj. Bal. 6,000 Adj. Bal. 5,000 Retained Earnings Income Summary 41,000 Adj. Bal. Supplies Expense Adj. Bal. 10,000 Calculate the ending balances to update the t-accounts for the next accounting cycle. Be sure to enter all zero balances on the normal balance side and enter balances for permanent accounts! Retained Earnings Income Summary Dec. 31 24,100 27,100 Adj. Bal. Dec. 31 Dec.31 8,000 12,400 Dec.31 9,100 Dec. 31 4,400 Bal. 4,400 Bal. Dec. 31 4.400 | Prepaid Rent Service Revenue Dec. 31 12,500 Dec. 31 c31 15,900 15:00 15:00 Ad, Bl 15,900 Adj. Bal. Common Stock Interest Expense 57,800 Dec. 31 Adj. Bal. 800 800 Dec. 31 Dividends Accounts Payable Adj. Bal. 6,300 6,300 Dec. 31 6,100 Dec. 31