Question

Prepare the closing entry required at September 30, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2018. $ 610 310 Accounts Payable Accounts Receivable Accumulated Depreciation Cash Common Stock Deferred Revenue Depreciation Expense Equipment Income Tax Expense Interest Revenue Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Rent Expense Retained Earnings Salaries and Wages Expense Service Revenue Supplies Supplies Expense Travel Expense 910 310 210 210 310 3,210 310 110 210 510 110 410 1,510 2,210 6,230 510 210 2,610

Answer 1

Closing entry

No	Account title and explanation	Debit	Credit
A	Service revenue	6230
	Interest revenue	110
	Retained earnings		280
	Supplies expense		210
	Travel expense		2610
	Salaries and wages expense		2210
	Rent expense		410
	Income tax expense		310
	Depreciation expense		310
	(To close revenue and expense)