The adjusted trial balance for Lloyd Construction as of December 31, 2020, follows:

No.	Account		Debit			Credit
101	Cash	$	15,400
104	Short-term investments		20,400
126	Supplies		7,000
149	Notes receivable		39,000
167	Equipment		72,000
168	Accumulated depreciation, equipment				$	35,000
173	Building		254,000
174	Accumulated depreciation, building					138,000
183	Land		83,000
193	Franchise		28,000
201	Accounts payable					16,400
203	Interest payable					140
233	Unearned professional revenue					26,400
251	Long-term notes payable					126,000
301	Amar Lloyd, capital					86,530
302	Amar Lloyd, withdrawals		2,400
401	Professional revenue					200,480
406	Rent revenue					23,000
606	Depreciation expense, building		19,400
612	Depreciation expense, equipment		7,400
623	Wages expense		63,400
633	Interest expense		550
637	Insurance expense		17,400
652	Supplies expense		12,200
688	Telephone expense		3,800
690	Utilities expense		6,600
	Totals	$	651,950		$	651,950

An analysis of other information reveals that Lloyd Construction is required to make a $39,000 payment on the long-term notes payable during 2021. The notes receivable are due May 1, 2022. Also, Amar Lloyd invested $69,000 cash early in 2020.

Required:
Prepare the closing entries made at the end of the year.

Answer rating: 100% (QA)

1 Income statement of Lloyd Construction for the year ended December 3... View the full answer