Exercise 4-22

(Algorithmic) Closing Process A partial adjusted trial balance is shown as follows for Sparks Electricity: Sparks Electricity Partial Adjusted Trial Balance June 30 Debit Credit Retained Earnings $17,650

Service Revenue 29,500

Advertising Expense $1,470

Depreciation Expense 9,450

Interest Expense 350

Salaries Expense 7,600

Supplies Expense 3,100

Utilities Expense 2,210

Dividends 1,230

a. Prepare Sparks' income statement. List the accounts in chart of accounts order.

b.Prepare statement of retained earnings for the month of June.

c. Prepare the appropriate closing entries at June 30. When more than one debit or credit, list the accounts in chart of accounts order.

d. What is the purpose of "closing the books" at the end of an accounting period?r a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".