An Adjusted Trial Balance Is Shown Below -Please Prepare the Second Closing Entry

question 10

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 prepare the second closing entry.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline\end{array}$$

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Definitions:

Product Chain

The sequence of processes involved in the production and distribution of a product, from raw materials to the final consumer.

Just-In-Time Inventory

A supply chain management strategy aimed at reducing inventory costs by receiving goods only as they are needed in the production process.

Finished Goods Inventory

The inventory of completed products that are ready to be sold by a company.

Production Runs

Production Runs refer to the set periods of time during which a specific production process is executed, often characterized by the quantity of output produced.