The following is the adjusted trial balance as of December 31, 2017 of Current Times Watch Inc

Question

:

Accounts Debit Credit
Cash $ 18,000
Accounts Receivable 30,000
Prepaid Insurance 9,000
Office Supplies 3,200
Building 165,000
Accumulated Depreciation-Building $ 12,000
Equipment 88,000
Accumulated Depreciation-Equipment 8,500
Land 45,000
Accounts Payable 12,000
Salaries Payable 2,000
Unearned Revenue 25,000
Mortgage Payable 100,000
Common Stock 21,290
Dividends 25,840
Service Revenue 325,000
Salaries Expense 63,000
Depreciation Expense-Building and Equipment 6,250
Supplies Expense 15,000
Insurance Expense 14,500
Utilities Expense 23,000 _______
Total $505,790 $505,790

Provide the closing entry for the Income Summary account.
What will be an ideal response

Answer 1

Income Summary 203,250
Retained Earnings 203,250

Notes:

Service Revenue $325,000
Salaries Expense - 63,000
Depreciation Expense—Building and Equipment - 6,250
Office Supplies Expense - 15,000
Insurance Expense - 14,500
Utilities Expense - 23,000
Net Income $203,250