Following are selected account balances from the December 31, 2009, adjusted trial balance of Hershel Supply Company:
Cash............................................................... $ 4,000
Accounts Receivable..................................... 5,000
Unearned Rental Revenue............................. 12,200
Utilities Expense............................................ 6,000
Income Taxes Expense.................................. 8,000
Accounts Payable.......................................... 3,000
Sales Revenue................................................ 50,000
Selling Expenses............................................ 12,000
Prepaid Rent.................................................. 9,000
Required:
(a) Assuming that all the corporation’s temporary accounts are included in the listed accounts, prepare the appropriate December 31 closing entries for Hershel Supply.
(b) How much net income did Hershel Supply earn during the period?
(c) For any item not used in part (a), indicate where that item would appear on the financial statements.