An Adjusted Trial Balance Is Shown Below - Please Provide the Third Closing Entry

question 25

Essay

An adjusted trial balance is shown below.
$$\begin{array} { | l | r | r | } \hline & { \text { Debit } } & { \text { Credit } } \\\hline \text { Cash } & \$ 12,600 & \\\hline \text { Accounts receivable } & 2,400 & \\\hline \text { Prepaid rent } & 800 & \\\hline \text { Inventory } & 28,000 & \\\hline \text { Accounts payable } & & \$ 4,200 \\\hline \text { Salary payable } & & 1,000 \\\hline \text { Notes payable } & & 800 \\\hline \text { Capital } & & 13,800 \\\hline \text { Drawing } & 1,000 & \\\hline \text { Sales revenue } & &96,000 \\\hline\text { Sales returns and allowances }&1,600\\ \hline \text { Sales discounts } & 400 & \\\hline \text { Cost of goods sold } & 25,000 & \\\hline \text { Salary expense } & 21,000 & \\\hline \text { Rent expens } & 14,000 & \\\hline \text { Depreciation expense } & 8,500 & \\\hline \text { Supplies expense } & 500 & \\\hline \text { Total } & \$ 115,800 & \$ 115,800 \\\hline\end{array}$$

- Please provide the third closing entry.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

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Definitions:

Discount Factor

A multiplier used in financial calculations to determine the present value of future cash flows or payments.

Profitability Index

A financial metric comparing the present value of future cash flows generated by a project to its initial investment cost, used in capital budgeting.

Investment Projects

Initiatives undertaken by a business or organization to invest in assets or resources with the expectation of generating future profit.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.