The Following Is the Adjusted Trial Balance as of December

question 107

Essay

The following is the adjusted trial balance as of December 31,2019 of Wilson Repair Services Company after the first year of operations:
$\begin{array}{|l|r|r|}\hline \text { Accounts } & { \text { Debit } } & { \text { Credit } } \\\hline \text { Cash } & \$ 18,000 \\\hline \text { Accounts Receivable } & 30,000 \\\hline \text { Prepaid Insurance } & 9,000 \\\hline \text { Office Supplies } & 3,200 \\\hline \text { Land } & 45,000 \\\hline \text { Building } & 165,000 \\\hline \text { Accumulated Depreciation-Building } & & \$ 12,000 \\\hline \text { Equipment } & 88,000 & \\\hline \text { Accumulated Depreciation-Equipment } & & 8,500 \\\hline \text { Accounts Payable } & & 12,000 \\\hline \text { Salaries Payable } & & 2,000 \\\hline \text { Unearned Revenue } & & 25,000 \\\hline \text { Mortgage Payable } & & 100,00 \\\hline \text { Martin, Capital } & & 21,290\\ \hline \text { Martin, Withdrawals } & 25,840 & \\\hline \text { Service Revenue } & & 325,00 \\\hline \text { Salaries Expense } & 63,000 & \\\hline \text { Depreciation Expense—Building and } & & \\\text { Equipment } & 6,250 & \\\hline \text { Supplies Expense } & 15,000 & \\\hline \text { Insurance Expense } & 14,500 & \\\hline \text { Utilities Expense } & 23,000 & \\\hline \text { Total } & \$ 505,790 & \$ 505,790 \\\hline\end{array}$
Prepare the closing entry for the Income Summary account.Omit explanation.

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Definitions:

Operating Time

The total time during which a machine, system, or facility is functional and performing its intended tasks.

Product Layout

A type of factory layout where equipment and workstations are arranged in line with the sequence of operations for a specific product.

Equipment Utilization

A measure of how effectively a business or operation uses its equipment in terms of maximizing output and minimizing idle time.

Line Balancing

Line balancing involves arranging a production line so that each workstation has an approximately equal amount of work.