Question

Cynthia Elmer, CPA, had the following partial worksheet:

Requirements

1. Complete the worksheet.

2. Prepare the closing entries for Cynthia Elmer, CPA.

Short answer

(1) Worksheet is mentioned in Step 1.

(2) Closing entries are mentioned in Step 2.

Step-by-step solution

Worksheet

(1) Worksheet is shown as follows:

CYNTHIA ELMER, CPA
Worksheet
December 31, 2018
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance	Income Statement	Balance Sheet
Account Names	Debit	Credit		Debit	Credit		Debit	Credit	Debit	Credit	Debit	Credit
Cash	$46,900						$46,900				$46,900
Accounts Receivable	9,600		(h)	$3,700			13,300				13,300
Office Supplies	800				$500	(b)	300				300
Prepaid Rent	8,000				3,300	(a)	4,700				4,700
Land	35,000						35,000				35,000
Building	125,000						125,000				125,000
Accumulated Depreciation—Building					1,150	(c)		$1,150				$1,150
Furniture	28,000						28,000				28,000
Accumulated Depreciation—Furniture					2,000	(d)		2,000				2,000
Accounts Payable		$3,500						3,500				3,500
Utilities Payable		710						710				710
Salaries Payable					4,200	(f)		4,200				4,200
Interest Payable					500	(g)		500				500
Unearned Revenue		5,000	(e)	1,300				3,700				3,700
Notes Payable		15,000						15,000				15,000
Common Stock		118,000						118,000				118,000
Retained Earnings		119,000						118,090				118,090
Dividends	29,000						29,000				29,000
Service Revenue		95,000			5,000	(e,h)		100,000		$100,000
Rent Expense	20,000		(a)	3,300			23,300		$23,300
Salaries Expense	28,000		(f)	4,200			32,200		32,200
Supplies Expense			(b)	500			500		500
Utilities Expense	25,000						25,000		25,000
Depreciation Expense—Building			(c)	1,150			1,150		1,150
Depreciation Expense—Furniture			(d)	2,000			2,000		2,000
Interest Expense			(g)	500			500		500
Total	$355,300	$355,300		$16,650	$16,650		$366,850	$366,850	$84,650	$100,000	$282,200	$266,850
								Net Income	15,350			15,350
Total									$100,000	$100,000	$282,200	$282,200

Closing entries

(2) Closing entries are as follows:

Date	Accounts and Explanation	Debit	Credit
Dec. 31	Service Revenue	$100,000
	Income Summary		$100,000
	To close revenue.
Dec. 31	Income Summary	$49,850
	Rent Expense		$23,300
	Salaries Expense		$32,200
	Supplies Expense		$500
	Utilities Expense		$25,000
	Depreciation Expense—Building		$1,150
	Depreciation Expense—Furniture		$2,000
	Interest Expense		$500
	To close expenses.
Dec. 31	Income Summary	$15,350
	Retained Earnings		$15,350
	To close Income Summary
Dec. 31	Retained Earnings	$29,000
	Dividends		$29,000
	To close Dividends