Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjusting entries.

[The following information applies to the questions displayed below.]

Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjusting entries.

Trial Balance, December 31 of the Current Year
		Before Adjusting Entries				After Adjusting Entries
	Items		Debit		Credit		Debit		Credit
a.	Cash	$	12,600			$	12,600
b.	Accounts receivable						430
c.	Prepaid insurance		480				320
d.	Equipment		168,880				168,880
e.	Accumulated depreciation, equipment			$	41,200			$	47,500
f.	Income taxes payable								1,740
g.	Common stock and additional paid-in capital				104,000				104,000
h.	Retained earnings, January 1				18,140				18,140
i.	Service revenue				73,600				74,030
j.	Salary expense		54,980				54,980
k.	Depreciation expense						6,300
l.	Insurance expense						160
m.	Income tax expense						1,740
		$	236,940	$	236,940	$	245,410	$	245,410
5. Record the closing entry at December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

5. Record the closing entry at December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet