Using the information from the Adjusted Trial Balance, journalize the closing entries for the end of the month.

SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
	Balance
Account Title	Debit	Credit
Cash	19,200
Accounts Receivable	10,600
Office Supplies	200
Prepaid Rent	12,800
Furniture	22,400
Accumulated Depreciation--Furniture		7,700
Accounts Payable		2,500
Salaries Payable		600
Interest Payable		300
Unearned Revenue		6,400
Notes Payable		8,900
Common Stock		12,500
Retained Earnings		12,800
Dividends	32,800
Service Revenue		58,300
Depreciation Expense--Furniture	2,500
Interest Expense	300
Rent Expense	3,800
Salaries Expense	4,400
Supplies Expense	1,000
Total	110,000	110,000

Date	Accounts and Explanation	Debit	Credit
Nov. 30Dec. 1Dec. 15Dec. 31
	To close DividendsTo close ExpensesTo close Income SummaryTo close Revenue

Date	Accounts and Explanation	Debit	Credit
Nov. 30Dec. 1Dec. 15Dec. 31
	To close DividendsTo close ExpensesTo close Income SummaryTo close Revenue

Date	Accounts and Explanation	Debit	Credit
Nov. 30Dec. 1Dec. 15Dec. 31
	To close DividendsTo close ExpensesTo close Income SummaryTo close Revenue

Date	Accounts and Explanation	Debit	Credit
Nov. 30Dec. 1Dec. 15Dec. 31
	To close DividendsTo close ExpensesTo close Income SummaryTo close Revenue

A single underline below a cell represents subtotal.

A double underline below a cell represents grand total.

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
Dec. 31	Service Revenue	100,000
	Income Summary		100,000
	To close Revenue

Date	Accounts and Explanation	Debit	Credit
Dec. 31	Income Summary	46,000
	Retained Earnings		46,000
	To close Income Summary

Date	Accounts and Explanation	Debit	Credit
Dec. 31	Retained Earnings	23,000
	Dividends		23,000
	To close Dividends

Date	Accounts and Explanation	Debit	Credit
Dec. 31	Income Summary	54,000
	Depreciation Expense--Furniture		9,000
	Interest Expense		12,000
	Rent Expense		5,000
	Salaries Expense		10,000
	Supplies Expense		18,000
	To close Expenses

Depreciation Expense--Furniture
Adj. Bal.	9,000		Bal.DEIR
Bal.DEIR			Bal.DEIR

Rent Expense
Adj. Bal.	5,000		Bal.DEIR
Bal.DEIR			Bal.DEIR

Dividends
Adj. Bal.	23,000		Bal.DEIR
Bal.DEIR			Bal.DEIR

Service Revenue
Bal.DEIR		100,000	Adj. Bal.
Bal.DEIR			Bal.DEIR

Interest Expense
Adj. Bal.	12,000		Bal.DEIR
Bal.DEIR			Bal.DEIR

Salaries Expense
Adj. Bal.	10,000		Bal.DEIR
Bal.DEIR			Bal.DEIR

Retained Earnings
Bal.DEIR		32,000	Adj. Bal.
Bal.DEIR			Bal.DEIR
Bal.DEIR			Bal.DEIR

Income Summary
Bal.DEIR			Bal.DEIR
Bal.DEIR			Bal.DEIR
Bal.DEIR			Bal.DEIR
Bal.DEIR			Bal.DEIR

Supplies Expense
Adj. Bal.	18,000		Bal.DEIR
Bal.DEIR			Bal.DEIR

A T is drawn. The vertical line divides the account into its left and right sides. The left side of the T-account is called the debit side and the right side is called the credit side. The account name is at the top, above the horizontal line.

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
Dec. 31	18,700	26,700	Adj. Bal.
		8,900	Dec. 31
Bal.			Bal.

Income Summary
Dec. 31	6,800	13,400	Dec. 31
		6,600	Bal.
Dec. 31	6,600
Bal.			Bal.

Furniture
Dec. 31	18,100
Bal.			Bal.

Service Revenue
Dec. 31	14,000	14,000	Adj. Bal.
Bal.			Bal.

Common Stock
		44,800	Dec. 31
Bal.			Bal.

Interest Expense
Adj. Bal.	700	700	Dec. 31
Bal.			Bal.

Dividends
Adj. Bal.	7,800	7,800	Dec. 31
Bal.			Bal.

Accounts Payable
		8,200	Dec. 31
Bal.			Bal.