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Klondike Advertising Agency reported the following items at July 31, 2014:
Advertising expense $2,700
Other assets $400
Depreciation expense $850
Long-term liabilities $500
Cash $1,000
Service revenue $8,300
Accounts Payable $600
Accounts receivable $1,600
Question 1: Prepare T-accounts for Klondike Advertising Agency. Insert the account balances prior to closing. Post the closing entries to these 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.
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