Based on the Following Adjusted Trial Balance, Prepare the Closing $\quad$

question 31

Essay

Based on the following adjusted trial balance, prepare the closing entries for Tudhope Plumbing on December 31, 2019. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Tudhope Plumb ing}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Adjusted Trial Balance}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {December 31, 2019}$

$\begin{array} { l r r } & \text { Debit } & \text { Credit } \\ \text { Cash } & \$ 12,000 & \\ \text { Accounts receivable } & 20,500 & \\ \text { Office supplies } & 4,600 & \\ \text { Prepaid insurance } & 4,800 & \\ \text { Equipment } & 80,500 & \\ \text { Accum. amort.equipment } & & \$ 43,300 \\ \text { Accounts payable } & & 15,500 \\ \text { Unearned service revenue } & & 6,800 \\ \text { Salary payable } & & 3,300 \\ \text { Mike Tudhope, Capital } & & 80,200 \\ \text { Mike Tudhope, withdrawals } & 20,600 & \\ \text { Service revenue } & & 77,500 \\ \text { Salary expense } & 33,900 & \\ \text { Advertising expense } & 15,400 & \\ \text { Utilities expense } & 9,900 & \\ \text { Miscellaneous expense } & 1,700 & \\ \text { Supplies expense } & 4,900 & \\ \text { Insurance expense } & 5,400 & \\ \text { Amort. expense-equipment } & 12,400 &\underline{\quad\quad} \\ \text { Total } & \$ 226,600 & \$ 226,600 \end{array}$

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Drawing Account

An account used by sole proprietors or partners to record the money withdrawn from the business for personal use.

Capital Account

Refers to a financial statement that shows the changes in a company's equity during a specific period due to transactions with its owners, such as stock issuance and dividend payments.