Following is a list of certain account balances included in the adjusted trial balance of Larry’s Shoe Repair Shop as of December 31, 2009. This list includes all the business’s revenue and expense accounts as well as selected additional accounts.
Prepaid Rent............................................................ $ 9,000
Accounts Payable.................................................... 16,400
Utilities Expense..................................................... 2,000
Cash........................................................................ 24,000
Accounts Receivable............................................... 6,000
Shoe Repair Revenue.............................................. 70,000
Prepaid Insurance................................................... 11,000
Unearned Repair Revenue..................................... 1,400
Dividends.............................................................. 2,700
Salaries Expense................................................... 24,000
Salaries Payable.................................................... 1,800
Bonds Payable ..................................................... 3,000
Income Taxes Expense......................................... 16,000
Required:
(a) Prepare all appropriate closing entries for Larry’s Shoe Repair Shop on December 31, 2009. The shop is a corporation.
(b) What was the company’s net income (loss) for 2009?