An Adjusted Trial Balance for a Merchandiser Is Given Below

question 209

Essay

An adjusted trial balance for a merchandiser is given below.
$$\begin{array} { | l | r | r | } \hline & { \text { Debit } } &{ \text { Credit } } \\\hline \text { Cash } & \$ 12,600 & \\\hline \text { Accounts Receivable } & 2,400 & \\\hline \text { Prepaid Rent } & 800 & \\\hline \text { Merchandise Inventory } & 30,000 & \\\hline \text { Salaries Payable } & & \$ 4,200 \\\hline \text { Notes Payable } & & 1,000 \\\hline \text { Common Stock } & & 800 \\\hline \text { Retained Earnings } & & 3,800 \\\hline \text { Dividends } &1,000 & \\\hline \text { Sales Revenue } & & 96,000\\\hline \text { Sales Discounts Forfeited } & & 400\\\hline \text { Cost of Goods Sold } & 23,000& \\\hline \text { Insurance Expense } & 2,400 & \\\hline\text { Salaries Expense }&21,000\\ \hline \text { Rent Expense } &14,000& \\\hline \text { Selling Expense } &8,500 & \\\hline\text { Supplies Expense }&\underline { 500 } \\\hline \text { Total } & \underline { 116,200 } & \underline { 116,200 } \\\hline\end{array}$$ Prepare the journal entry to close the revenue and other income accounts. Omit explanation.

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Definitions:

Limited Resources

The finite availability of resources, such as land, labor, and capital, which can restrict economic growth and development.

Unlimited Wants

The economic concept that humans have an endless number of desires for goods and services, even if resources for fulfilling those desires are limited.

Entrepreneurship

The act of starting and managing a business venture, along with any of its risks, in order to make a profit and innovate in the market.

Financial Capital

The money, credit, and other forms of funding that businesses use to invest in resources for future growth.