70.2K

Verified Solution

Link Copied!

Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Credit Debit $ 47,400 11,400 440 650 16,700 $ 8,800 10,660 2,390 Account Titles Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated depreciation Other assets Accounts payable Wages payable Income taxes payable Note payable (3 years; 10% interest Gue each December 31) Common stock (5,400 shares outstanding) Additional paid-in capital Retained earnings Service revenue Remaining expenses (not detailed; excludes income tax) Income tax expense Totals 12,000 1,886 16,974 5,800 72,710 33,310 $ 120,560 $ 120,560 Data not yet recorded at December 31 included: a. The supplies count on December 31 reflected $240 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $650. C. Depreciation expense for the current year, $4,100. d. Wages earned by employees not yet paid on December 3, $530. e. Income tax expense, $5,480. 3. Record the closing entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record closing entry to transfer revenues and expenses to Income summary. Note: Enter debits before credits Transaction General Journal Debit Credit

Answer & Explanation Solved by verified expert

See Answer