Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31.

DebitCredit
Cash1,500
Accounts Receivable2,000
Interest Receivable100
Prepaid Insurance1,600
Notes Receivable (long-term)2,800
Equipment15,000
Accumulated Depreciation3,000
Accounts Payable2,400
Accrued Expenses Payable3,920
Income Taxes Payable2,700
Unearned Rent fees500
Common Stock500
Retained Earnings2,700
Dividends2,000
Rent Fees Earned37,000
Furniture Rental Revenue1,200
Interest Revenue100
Wages Expense19,000
Depreciation Expense1,800
Utilities Expense320
Insurance Expense700
Maintenance Expense9,000
Income Tax Expense2,700
58,52058,520


Prepare the entry required to close the expense accounts at the end of the period.

Answer & Explanation

The journal entry required to close the expense account is given below:

  • Income summary Dr $33,520
    • To Wages Expense $19,000
    • To Depreciation Expense $1,800
    • To Utilities Expense $320
    • To Insurance Expense $700
    • To Maintenance Expense $9,000
    • To Income Tax Expense $2,700

Cite/Link to This Article

  • Stewart, Suzy. "Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31.". One Brick Court. Accessed on August 2, 2021. https://onebrickcourt.com/beachside-realty-rents-condominiums-and-furnishings-below-is-the-adjusted-trial-balance-at-december-31/.

  • Stewart, Suzy. "Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31.". One Brick Court, https://onebrickcourt.com/beachside-realty-rents-condominiums-and-furnishings-below-is-the-adjusted-trial-balance-at-december-31/. Accessed 2 August, 2021.

  • Stewart, Suzy. Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31.. One Brick Court. Retrieved from https://onebrickcourt.com/beachside-realty-rents-condominiums-and-furnishings-below-is-the-adjusted-trial-balance-at-december-31/.