QUESTION:
Record closing entry to transfer revenues and expenses to retained earnings.
Extracted text: P4-7 (Algo) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share LO4-1, 4-2, 4-4 [The following information applies to the questions displayed below.) Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Tunstall, Inc. Unadjusted Trial Balance for the Year Ended December 31 Debit 47,600 10,500 470 Credit Cash Accounts receivable Supplies Prepaid insurance Service trucks 760 16,800 Accumulated depreciation 8,800 Other assets 10,660 Accounts payable Wages payable Income taxes payable Notes payable, long-term Common stock (5,400 shares outstanding) Additional paid-in capital Retained earnings Service revenue 2,370 12,000 1,906 17,154 5,300 88,730 Wages expense Remaining expenses (not detailed; excludes income tax) 16,200 33,270 Income tax expense Totals 136,260 136, 260 Data not yet recorded at December 31 included: a. The supplies count on December 31 reflected $230 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $760. c. Depreciation expense for the current year, $4,100. d. Wages earned by employees not yet paid on December 31, $700. e. Income tax expense, $5,080.