On December 31, the adjusted trial balance of Domino Inc. shows the following selected data:

Analysis shows that adjusting entries had been made, and included above, for (1) 59,700 of services performed but not billed, and (2) $6,400 of accrued but unpaid interest.
Instructions
(a) Prepare the closing entries for the temporary accounts at December 31.
(b) Prepare the reversing entries on January I.
(c) Enter the adjusted trial balance data in the four accounts using T accounts, and post the entries in (a) and (b).
(d) Prepare the entries to record (1) collection of the service revenue on January 10, and (2) the payment of all interest due (that is, 56,400) on January 15.
(e) Post the entries in (d) to the temporary accounts.

Transcribed Image Text:

Accounts Receivable Interest Expense $9,700 12,800 Service Revenue Interest Payable $110,000 6,400