Salinas Trailer Rental rents small trailers by the day for local moving jobs. Its adjusted trial balance at the end of the current fiscal year follows.

Required
1. From the information given, record closing entries.
2. If closing entries were not prepared at the end of the accounting period, what problems would result in the next accountingperiod?

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Salinas Trailer Rental Adjusted Trial Balance June 30, 2014 1,384 1,944 238 720 24,000 Cash Accounts Receivable Supplies Prepaid Insurance Trailers Accumulated Depreciation- Trailers Accounts Payable Wages Payable D. Anatole, Capital D. Anatole, Withdrawals Trailer Rentals Revenue Wages Expense Insurance Expense Supplies Expense Depreciation Expense Trailers Other Expenses 14,400 542 400 11,388 14,400 91,092 46,800 1,440 532 4,800 21,564 117,822 117,822