ACC 421 Week 2: Prepare closing entries and post to the accounts.

Intermediate Financial Accounting I

Axia College of University of Phoenix (UoP)
Problem 3-9 (P3-9) (Adjusting and Closing). Presented below is the December 31 trial balance of Nancy Drew Boutique.
AND SO ON
Instructions
(a) Construct T-accounts and enter the balances shown.
(b) Prepare adjusting journal entries for the following and post to the T-accounts. (Omit explanations.)
Open additional T-accounts as necessary. (The books are closed yearly on December 31.)
(1) Bad debts are estimated to be $1,400.
(2) Furniture and equipment is depreciated based on a 6-year life (no salvage value).
(3) Insurance expired during the year $2,550.
(4) Interest accrued on notes payable $3,360.
(5) Sales salaries earned but not paid $2,400.
(6) Advertising paid in advance $700.
(7) Office supplies on hand $1,500, charged to Office Expense when purchased.
(c) Prepare closing entries and post to the accounts.