The Following Is the Adjusted Trial Balance for Tuttle Photography

question 163

Essay

The following is the adjusted trial balance for Tuttle Photography.
$\begin{array}{|l|r|c|}\hline\text { Account } &{\text { Debit }} &\text { Credit }\\\hline \text { Cash } & \$ 15,000 \\\hline \text { Accounts receivable } & 30,000 \\\hline \text { Prepaid insurance } & 7,500 \\\hline \text { Office supplies } & 3,200 \\\hline \text { Land } & 40,000 \\\hline \text { Building } & 160,000 \\\hline \text { Accumulated depreciation } & & \$ 12,000 \\\hline \text { Equipment } & 75,000 &\\\hline \text { Accumulated depreciation } & & 8,500 \\\hline \text { Accounts payable } & & 12,000 \\\hline \text { Salaries payable } & & 2,000 \\\hline \text { Unearned service revenue } & & 25,000 \\\hline \text { Mortgage payable } & & 100,000 \\\hline \text { R. Tuttle, capital } & & 21,290 \\\hline \text { R. Tuttle, drawing } & 23,000 \\\hline \text { Service revenue } & \\\hline \text { Salaries expense } & 61,000 \\\hline \text { Depreciation expense } & 6,150 \\\hline \text { Supplies expense } & 14,040 \\\text { Innsurance expense } & 14,000 \\\hline \text { Utilities expense } & 20,900 \\\hline & \$ 469,790 & \$ 469,790 \\\hline\end{array}$ Using the information from the worksheet above,prepare the closing entry for Revenues.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

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Definitions:

Limited Liability

A legal principle where an investor's financial liability is limited to a fixed sum, mostly the value of an individual's investment in a company or partnership.

Sole Proprietor

A business owned and operated by a single individual, without a legal distinction between the owner and the business.

Separate Legal Entity

A business entity that is legally distinct from its owners, meaning it can own property, incur debts, and be sued in its own name.

Ratification

The action of formally confirming or approving an agreement, treaty, or contract, making it officially valid.