The adjusted trial balance for China Tea Company at December 31, 2024, is presented below: Debit Credit Cash $ 11,100 Accounts receivable 156,000 Prepaid rent 5,600 Inventory 31,000 Equipment 360,000 Accumulated depreciation $ 131,000 Accounts payable 36,000 Notes payable (due in three months) 36,000 Salaries payable 4,600 Interest payable 12,600 Common stock 230,000 Retained earnings 63,200 Dividends 11,000 Sales revenue 460,000 Costs of goods sold 210,000 Salaries expense 126,000 Rent expense 21,000 Depreciation expense 36,000 Interest expense 2,600 Advertising expense 3,100 Totals $ 973,400 $ 973,400 Required: Prepare the closing entries for China Tea Company for the year ended December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
The adjusted trial balance for China Tea Company at December 31, 2024, is presented below: Debit Credit Cash $ 11,100 Accounts receivable 156,000 Prepaid rent 5,600 Inventory 31,000 Equipment 360,000 Accumulated depreciation $ 131,000 Accounts payable 36,000 Notes payable (due in three months) 36,000 Salaries payable 4,600 Interest payable 12,600 Common stock 230,000 Retained earnings 63,200 Dividends 11,000 Sales revenue 460,000 Costs of goods sold 210,000 Salaries expense 126,000 Rent expense 21,000 Depreciation expense 36,000 Interest expense 2,600 Advertising expense 3,100 Totals $ 973,400 $ 973,400 Required: Prepare the closing entries for China Tea Company for the year ended December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The adjusted
| Debit | Credit | |
|---|---|---|
| Cash | $ 11,100 | |
| 156,000 | ||
| Prepaid rent | 5,600 | |
| Inventory | 31,000 | |
| Equipment | 360,000 | |
| $ 131,000 | ||
| Accounts payable | 36,000 | |
| Notes payable (due in three months) | 36,000 | |
| Salaries payable | 4,600 | |
| Interest payable | 12,600 | |
| Common stock | 230,000 | |
| 63,200 | ||
| Dividends | 11,000 | |
| Sales revenue | 460,000 | |
| Costs of goods sold | 210,000 | |
| Salaries expense | 126,000 | |
| Rent expense | 21,000 | |
| Depreciation expense | 36,000 | |
| Interest expense | 2,600 | |
| Advertising expense | 3,100 | |
| Totals | $ 973,400 | $ 973,400 |
Required:
Prepare the closing entries for China Tea Company for the year ended December 31, 2024.
Note: If no entry is required for a transaction/event, select "No
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