The Sky Blue Corporation has the following adjusted trial balance at December 31. Credit Cash Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Dividends Sales Revenue Rent Revenue Salaries and Wages Expense Depreciation Expense Utilities Expense Insurance Expense Rent Expense Income Tax Expense Total Debit $ 1,260 2,300 2,600 3,300 13,500 330 $ 3,200 5,720 1,150 3,200 660 2,700 1,120 44,730 330 22,200 1,600 4,520 1,700 6,300 3,200 $ 62,810 $ 62,810 Required: Prepare closing journal entries on December 31. (If no entry is required for a transaction in the first account field 1
The Sky Blue Corporation has the following adjusted trial balance at December 31. Credit Cash Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Dividends Sales Revenue Rent Revenue Salaries and Wages Expense Depreciation Expense Utilities Expense Insurance Expense Rent Expense Income Tax Expense Total Debit $ 1,260 2,300 2,600 3,300 13,500 330 $ 3,200 5,720 1,150 3,200 660 2,700 1,120 44,730 330 22,200 1,600 4,520 1,700 6,300 3,200 $ 62,810 $ 62,810 Required: Prepare closing journal entries on December 31. (If no entry is required for a transaction in the first account field 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:The Sky Blue Corporation has the following adjusted trial balance at December 31.
Cash
Accounts Receivable
Prepaid Insurance
Notes Receivable (long-term)
Equipment
Accumulated Depreciation
Accounts Payable
Salaries and Wages Payable
Income Taxes Payable
Deferred Revenue
Common Stock
Retained Earnings
Dividends
Sales Revenue
Rent Revenue
Salaries and Wages Expense
Depreciation Expense
Utilities Expense
Insurance Expense
Rent Expense
Income Tax Expense
Total
View transaction list
Journal entry worksheet
1
Debit
$ 1,260
2,300
2,600
3,300
13,500
2
330
22,200
1,600
4,520
1,700
6,300
3,200
$ 62,810
Credit
$ 3,200
5,720
1,150
3,200
660
Required:
Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required"
in the first account field.)
2,700
1,120
44,730
330
$ 62,810
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