Posting closing entries Patel Insurance Agency reported the following items at September 30:
|
Sales and marketing expense |
$1,600 |
Cash |
$1,300 |
|
Other assets |
700 |
Service revenue |
4,000 |
|
Depreciation expense |
900 |
Retained earnings |
500 |
|
Long term liabilities |
600 |
Accounts receivable |
900 |
Requirement
1. Prepare T accounts for Patel Insurance Agency. Insert the account balances prior to closing. Post the closing entries to the affected T accounts, and show each account’s ending balance after closing. Also show the Income summary T account. Denote a balance as Bal and a closing entry amount as Clo.