Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31:
| Account Titles |
Debit |
Credit |
| Cash |
$ |
46,200 |
|
|
| Accounts receivable |
|
11,200 |
|
|
| Supplies |
|
590 |
|
|
| Prepaid insurance |
|
630 |
|
|
| Service trucks |
|
16,900 |
|
|
| Accumulated depreciation |
|
|
$ |
9,100 |
| Other assets |
|
9,260 |
|
|
| Accounts payable |
|
|
|
2,240 |
| Wages payable |
|
|
|
|
| Income taxes payable |
|
|
|
|
| Note payable (3 |
|
|
|
13,000 |
| Common stock (4,100 shares outstanding) |
|
|
|
2,026 |
| Additional paid-in capital |
|
|
|
18,234 |
| Retained earnings |
|
|
|
4,800 |
| Service revenue |
|
|
|
68,670 |
| Remaining expenses (not detailed; excludes income tax) |
|
33,290 |
|
|
| Income tax expense |
|
|
|
|
| Totals |
$ |
118,070 |
$ |
118,070 |
|
|
Data not yet recorded at December 31 included:
- The supplies count on December 31 reflected $230 in remaining supplies on hand to be used in the next year.
- Insurance expired during the current year, $630.
- Depreciation expense for the current year, $3,400.
- Wages earned by employees not yet paid on December 3, $620.
- Income tax expense, $5,880.
3. Record the closing entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)