Robert Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial
Question:
Robert Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31:
Robert Evans
ADJUSTED TRIAL BALANCE
December 31, 20--
| ACCOUNT TITLE | DEBIT | CREDIT |
|---|---|---|
| Cash | 1,500.00 | |
| Accounts Receivable | 2,000.00 | |
| Interest Receivable | 100.00 | |
| Prepaid Insurance | 1,600.00 | |
| Notes Receivable | 2,800.00 | |
| Equipment | 15,000.00 | |
| Accumulated Depreciation | 3,000.00 | |
| Accounts Payable | 2,400.00 | |
| Accrued Expenses Payable | 3,920.00 | |
| Income Taxes Payable | 2,700.00 | |
| Unearned Rent Fees | 500.00 | |
| Robert Evans, Capital | 7,700.00 | |
| Robert Evans, Drawing | 2,000.00 | |
| Rent Fees Earned | 37,000.00 | |
| Furniture Rental Revenue | 1,200.00 | |
| Interest Revenue | 100.00 | |
| Wages Expense | 19,000.00 | |
| Depreciation Expense | 1,800.00 | |
| Utilities Expense | 320.00 | |
| Insurance Expense | 700.00 | |
| Maintenance Expense | 9,000.00 | |
| Income Tax Expense | 2,700.00 | |
| Totals | 58,520.00 | 58,520.00 |
Required:
Prepare the closing entry required to transfer the income or loss at the end of the period.
Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Robert Evans General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Interest Receivable
14 Prepaid Insurance
15 Notes Receivable
16 Equipment
17 Accumulated Depreciation
LIABILITIES
21 Accounts Payable
22 Accrued Expenses Payable
23 Income Taxes Payable
24 Unearned Rent Fees
EQUITY
31 Robert Evans, Capital
32 Robert Evans, Drawing
33 Income Summary
REVENUE
41 Rent Fees Earned
42 Furniture Rental Revenue
43 Interest Revenue
EXPENSES
51 Wages Expense
52 Depreciation Expense
53 Utilities Expense
54 Insurance Expense
55 Maintenance Expense
56 Income Tax Expense
Expert Answer:
