The adjusted trial balance of Smith Sign Company follows:

Requirements
1. Assume Smith Sign Company has a January 31 year-end. Journalize Smith€™s closing entries at January 31.
2. How much net income or net loss did Smith earn for the year ended January 31? How can you tell?€ƒ

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SMITH SIGN COMPANY Adjusted Trial Balance January 31, 2016 Balance Debit 15,300 1,800 1,000 51,000 Account Title Cash Office Supplies Prepaid Rent Equipment Accumulated Depreciation- Equipment Accounts Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Common Stock Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense- Equipment Supplies Expense Utilities Expense Total Credit S 6,600 4,300 300 4,500 4,900 38,500 1,000 17,600 3,800 1,500 400 200 700 76,700 S 76,700