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. Record the closing entry at December 31 of the current year. Record closing entry to transfer revenues and expenses to retained earnings.

Required information P4-6 (Static) Inferring Year-End Adjustments, Computing Earnings per Share and Total Asset Turnover, and Recording Closing Entries LO4-1, 4-3, 4-4 [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 Adjustments Items Debit Credit Debit Credit a. Cash 13,500 b. Accounts receivable c. Prepaid insurance 850 d. Equipment 168,280 e. Accumulated depreciation, equipment 42,100 f. Income taxes payable g. Common stock and additional paid-in capital 112,000 h. Retained earnings, January 1 19,600 i. Service revenue 64,400 j. Salary expense 55,470 k. Depreciation expense 1. Insurance expense m. Income tax expense 238,100 238, 100 After Adjusting Entries Debit Credit 13,500 1,820 720 168,280 48,100 1,155 112,000 19,600 66,220 55,470 6,000 130 1,155 247,075 247, 075