Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of...

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Finance

Starbooks Corporation provides an online bookstore forelectronic books. The following is a simplified list of accountsand amounts reported in its accounting records. The accounts havenormal debit or credit balances. Assume the year ended on September30, 2018.
Accounts Payable $ 602
Accounts Receivable 302
Accumulated Depreciation 902
Cash 302
Common Stock 202
Deferred Revenue 202
Depreciation Expense 302
Equipment 3,202
Income Tax Expense 302
Interest Revenue 102
Notes Payable (long-term) 202
Notes Payable (short-term) 502
Prepaid Rent 102
Rent Expense 402
Retained Earnings 1,502
Salaries and Wages Expense 2,202
Service Revenue 6,206
Supplies 502
Supplies Expense 202
Travel Expense 2,602
How do you prepare the closing entry required at September 30,2018?

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4.0 Ratings (705 Votes)

CLOSING ENTRIES--September 30, 2018:
Income summary	$ 6,012
Depreciation Expense		$ 302
Income Tax Expense		$ 302
Rent Expense		$ 402
Salaries and Wages Expense		$ 2,202
Supplies Expense		$ 202
Travel Expense		$ 2,602
[To close expense accounts]

Service Revenue	$ 6,206
Interest Revenue	$ 102
Income summary		$ 6,308
[To close revenue accounts]

Income summary [6308-6012]	$ 296
Retained earnings		$ 296
[To close income summary to retained earnings]
WORKSHEET:
TRIAL BALANCE
	Debit	Credit
Accounts Payable		$ 602
Accounts Receivable	$ 302
Accumulated Depreciation		$ 902
Cash	$ 302
Common Stock		$ 202
Deferred Revenue		$ 202
Depreciation Expense	$ 302
Equipment	$ 3,202
Income Tax Expense	$ 302
Interest Revenue		$ 102
Notes Payable (long-term)		$ 202
Notes Payable (short-term)		$ 502
Prepaid Rent	$ 102
Rent Expense	$ 402
Retained Earnings		$ 1,502
Salaries and Wages Expense	$ 2,202
Service Revenue		$ 6,206
Supplies	$ 502
Supplies Expense	$ 202
Travel Expense	$ 2,602
Total	$ 10,422	$ 10,422

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Starbooks Corporation provides an online bookstore forelectronic books. The following is a simplified list of accountsand amounts reported in its accounting records. The accounts havenormal debit or credit balances. Assume the year ended on September30, 2018.Accounts Payable $ 602Accounts Receivable 302Accumulated Depreciation 902Cash 302Common Stock 202Deferred Revenue 202Depreciation Expense 302Equipment 3,202Income Tax Expense 302Interest Revenue 102Notes Payable (long-term) 202Notes Payable (short-term) 502Prepaid Rent 102Rent Expense 402Retained Earnings 1,502Salaries and Wages Expense 2,202Service Revenue 6,206Supplies 502Supplies Expense 202Travel Expense 2,602How do you prepare the closing entry required at September 30,2018?