Prepare Closing Entries for December from the Following Income Statement

question 37

Essay

Prepare closing entries for December from the following Income Statement columns of the work sheet of Custom Cleaning Service,Inc.,assuming that a $500 dividend was paid during the period (omit explanations).

$\begin{array} { | l | r | r | } \hline & { \text { Income Statement } } \\\hline & { \text { Debit } } &{ \text { Credit } } \\\hline \text { Cleaning Revenue } & & 2,600 \\\hline \text { Wages Expense } & 1,200 & \\\hline \text { Rent Expense } & 400 & \\\hline \text { Supplies Expense } & 300 & \\\hline \text { Income Taxes Expense } & 40 & \\\hline & 1,940 & 2,600 \\\text { Net Income } & 660 & \\\hline & 2,600 & 2,600 \\\hline\end{array}$

---

Definitions:

Unconscionability

Refers to a contract or clause that is so unfair to one of the parties that it is voidable on the ground of inequity.

Meaningful Choice

The concept that consumers or parties should have the ability to make choices that are significant and informed.

Adhesion Contract

A standardized contract drafted by one party (usually a business) that offers little or no negotiation opportunity to the other party, often perceived as "take-it-or-leave-it" agreements.

Arbitration Agreement

A contract in which two or more parties agree to resolve disputes through arbitration rather than through the court system.