The calendar year-end adjusted trial balance for Blessinger Co. follows:BLESSINGER CO.Adjusted Trial BalanceDecember 31Cash$ 112,000?Accounts receivable27,000?Prepaid rent15,000?Prepaid Insurance9,000?Office supplies3,300?Office equipment38,000?Accumulated depreciation-Equipment?$3,200Building288,000?Accumulated depreciation-Building?42,000Land700,000?Accounts payable?25,800Salaries payable?14,500Interest payable?2,500Long-term note payable?72,000Common stock?200,000Retained earnings?710,000Dividends200,500?Service fees earned?430,800Salaries expense90,000?Insurance expense5,200?Rent expense5,000?Depreciation expense-Equipment800?Depreciation expense-Building7,000?Totals$1,500,800$1,500,800Required:(a) Prepare a classified year-end balance
sheet. (Note: A $9,000 installment on the long-term note payable is due within one year.)(b) Prepare the required closing entries.
What will be an ideal response?
*NI = $430,800 ? $90,000 ? $5,200 ? $5,000 ? $800 ? $7,000 = $322,800
Ending Retained earnings = $710,000 + $322,800 ? $200,500 = $832,300
| ? | Debit | Credit |
| Service Fees Earned | 430,800 | ? |
| Income Summary | ? | 430,800 |
| To close revenues | ? | ? |
| Income Summary | 108,000 | ? |
| Salaries expense | ? | 90,000 |
| Insurance expense | ? | 5,200 |
| Rent expense | ? | 5,000 |
| Depreciation expense-Equipment | ? | 800 |
| Depreciation expense-Building | ? | 7,000 |
| To close expenses | ? | ? |
| Income Summary | 322,800 | ? |
| Retained earnings | ? | 322,800 |
| To close income summary | ? | ? |
| Retained earnings | 200,500 | ? |
| Dividends | ? | 200,500 |
| To close dividends | ? | ? |
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