Question

Presented below is an adjusted trial balance for Shawn Company, at December 31, 2022. 

Prepare closing entries for December 31, 2022.

Answer 1

Date	Accounts titles and Explanation	Debit (in $)	Credit (in $)
Dec. 31	Service revenue	$ 29,000
	Income Summery		$ 29,000
	(To close revenue account )
Dec. 31	Income Summary   - Bal. Fig.	$ 22,800
	Advertising Expense		$ 1,400
	Depreciation Expense		$ 7,000
	Insurance expense		$ 1,600
	Salaries and wages expense		$ 12,000
	Rent Expense		$ 800
	(To close Expenses Accounts)
Dec. 31	Income Summery ($ 29,000 (-) $ 22,800 )	$ 6,200
	Owner’s capital		$ 6,200
	(To close income to Capital )
Dec. 31	Owner’s capital	$ 1,500
	Owner’s Drawings		$ 1,500
	(To close Drawings to Capital )