Seminoles corporation’s fiscal year-end is december 31, 2021. the following is a partial adjusted trial balance as of december 31. accounts debit credit retained earnings $ 10,000 dividends $ 1,000 service revenue 30,000 interest revenue 4,000 salaries expense 13,000 rent expense 4,000 advertising expense 1,000 depreciation expense 9,000 interest expense 3,000 required: 1. prepare the necessary closing entries.

Explanation:

The closing entries for the following accounts are shown below:

1. Service Revenue A/c Dr $30,00

   Interest Revenue A/c Dr $4,000

                To Income Summary $34,000

(Being revenue account closed)

2. Income summary A/c Dr $30,000

           To Advertising Expense $1,000

           To Salaries Expense $13,000

           To Depreciation Expense $9,000

           To Rent Expense $4,000

           To Interest Expense $3,000

(Being expenses accounts are closed)  

3. Retained earnings A/c Dr $1,000

                To Dividend A/c $1,000

(Being dividend account is closed)

Since there is no loss or profit as both debit side and the credit side is equal so no entry is passed