Preparing closing entries from a partial worksheet The adjusted trial balance from the January worksheet of Silver Sign Company follows:
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SILVER SIGN COMPANY Partial Worksheet Month Ended January 31, 2012 |
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|
|
Adjusted Trial Balance |
|
|
Account |
Debit |
Credit |
|
Cash |
$14,300 |
|
|
Supplies |
2,400 |
|
|
Prepaid rent |
1,400 |
|
|
Equipment |
45,000 |
|
|
Accumulated depreciation |
|
$ 6,100 |
|
Accounts payable |
|
4,500 |
|
Salary payable |
|
300 |
|
Unearned service revenue |
|
4,500 |
|
Note payable, long term |
|
5,300 |
|
Common stock |
|
16,000 |
|
Retained earnings |
|
16,600 |
|
Dividends |
800 |
|
|
Service revenue |
|
16,800 |
|
Salary expense |
3,600 |
|
|
Rent expense |
1,400 |
|
|
Depreciation expense |
400 |
|
|
Supplies expense |
200 |
|
|
Utilities expense |
600 |
|
|
Total |
$70,100 |
$70,100 |
Requirements
1. Journalize Silver’s closing entries at January 31.
2. How much net income or net loss did Silver earn for January? How can you tell?