Reference no: EM132678181

Problem 1: Frank's Custom Framing has journalized their adjusting entries and prepared their adjusted trial balance. Using the adjusted trial balance, prepare the closing entries using the income summary account for the month of December.

Cash$8,310 Dr
Accounts Receivable $2,500 Dr
Prepaid Insurance$2,050 Dr
Equipment$23,770 Dr
Accumulated Depreciation$1,740 Cr
Accounts Payable$3,960 Cr
Interest Payable$130 Cr
Unearned Revenue$2,470 Cr
Bank Loan$5,140 Cr
Frank, Capital$22,360 Cr
Frank, Withdrawals$3,410 Dr
Service Revenue$9,220 Cr
Depreciation Expense$270 Dr
Insurance Expense$240 Dr
Interest Expense$130 Dr
Office Supplies Expense$220 Dr
Rent Expense$1,650 Dr
Salaries Expense$2,210 Dr
Telephone Expense$260 Dr
Total$45,020 Dr / $45,020 Cr

• When closing accounts, use the income summary method.
• For the closing of the expense accounts, enter the expense accounts in alphabetical order.