242.The Income Statement columns of the work sheet prepared for Jolly Auto Service, Inc. at current year-end are shown below. In addition, Retained Earnings had a credit balance of $235,000 and Dividends had a debit balance of $40,000 at year end. Prepare closing journal entries for this company.
Income Statement
Dr.
Cr.
Service revenue$130,200
Wages expense$43,100
Rent expense16,200
Insurance expense1,800
Shop supplies expense3,500
Depreciation expense—Shop equipment7,000
Totals$71,600$130,200
Net income58,600
Totals$130,200$130,200
243.Presented below are the year-end balances at December 31 of Becca's Dry Cleaning Service, Inc. (All accounts have normal balances.)
Accounts receivable$12,000
Accounts payable25,000
Accumulated depreciation—equipment30,000
Cash42,000
Depreciation expense—equipment12,000
Insurance expense7,000
Equipment125,000
Service revenue200,000
Notes payable65,000
Common stock1,000
Retained earnings16,000
Dividends18,000
Prepaid insurance1,500
Salaries payable4,000
Salary expense97,000
Supplies1,500
Supplies expense16,000
Unearned service revenues500
Utilities expense9,500
(a) Prepare the necessary closing entries at December 31.
(b) Prepare a post-closing trial balance at December 31.