Reference no: EM132706212

Problem - Laker Incorporated's fiscal year-end is December 31, 2021. The following is an adjusted trial balance as of December 31.

Accounts Debit Credit

Cash $11,300

Supplies 35,500

Prepaid Rent 26,500

Accounts Payable $2,300

Notes Payable 23,000

Common Stock 36,500

Retained Earnings 8,300

Dividends 3,300

Service Revenue 54,700

Salaries Expense 19,300

Advertising Expense 12,300

Rent Expense 9,300

Utilities Expense 7,300

Totals $124,800 $124,800

Required -

1. Prepare the necessary closing entries.

2. Record the entry to close the revenue accounts.