An Adjusted Trial Balance for a Merchandiser Is Given Below

question 16

Essay

An adjusted trial balance for a merchandiser is given below.
$\begin{array}{|l|c|c|}\hline&\text { Debit } & \text { Credit }\\\hline \text { Cash } & \$ 12,600 & \\\hline \text { Accounts Receivable } & 2,400 & \\\hline \text { Prepaid Rent } & 800 & \\\hline \text { Merchandise Inventory } & 30,000 & \\\hline \text { Accounts Payable } & & \$ 4,200 \\\hline \text { Salaries Payable } & & 1,000 \\\hline \text { Notes Payable } & & 800 \\\hline \text { Common Stock } & & 10,000 \\\hline \text { Retained Earnings } & & 3,800 \\\hline \text { Dividends } & 1,000 & \\\hline \text { Sales Revenue } & & 96,000 \\\hline \text { Sales Discounts Forfeited } & & 400 \\\hline \text { Cost of Goods Sold } & 23,000 & \\\hline \text { Insurance Expense } & 2,400 & \\\hline \text { laries Expense } & 21,000 & \\\hline \text { at Expense } & 14,000 & \\\hline \text { ling Expense } & 8,500 & \\\hline \text { pplies Expense } & 500 & \\\hline \text {Total}& \$ 116,200 & 1116,200 \\\hline\end{array}$ Prepare the journal entry to close the expense accounts. Omit explanation.

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Definitions:

Money Income

Refers to the total amount of monetary earnings or receipts accruing to an individual or entity over a period, including wages, salaries, benefits, and income from investments.

Income Effect

The variation in a person's or an economy's earnings and its effect on the amount of a product or service that is requested.

Money Income

The total amount of monetary earnings or receipts accruing to an individual or household over a specified period of time.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.