After adjustment, these selected account balances of Cold Stream Campground are:

 

Debits

Credits

Retained earnings

 

$540,000.00

Rental revenue

 

960000

Salaries expense

$336,000.00

 

Depreciated expense – Buildings

64000

 

Utilities expense

208000

 

Dividends

32000

 

In T-account format, show how journal entries to close the books for the period would be posted. (You do not need to show the closing journal entries.) Enter these balances in the accounts before doing so. Key the postings from the first closing entry with the number (1), the second with the number

(2), and so on.

The following account balances appeared in the Income Statement columns of the work sheet entries prepared for Liu Company for the year ended 2010 December 31:

Account Titles

Income Statement

 

Debit

Credit

Service Revenue

 

330,000

Advertising Expense

1,350

 

Salaries Expense

130,000

 

Utilities Expense

2,250

 

Insurance Expense

900

 

Rent Expense

6,750

 

Supplies Expense

2,250

 

Depreciation Expense—Equipment

4,500

 

Interest Expense

562

 

Interest Revenue

 

1,125

 

148,552

331,125

Net Income

182,553

 
 

331,125

331,125

Prepare the closing journal entries.