Reference no: EM132866404

Problem - The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:

Debit Credit

Cash 11,900

Accounts receivable 164,000

Prepaid rent 6,400

Inventory 39,000

Equipment 440,000

Accumulated depreciation-equipment 139,000

Accounts payable 44,000

Notes payable-due in three months 44,000

Salaries payable 5,400

Interest payable 17,400

Common stock 270,000

Retained earnings 80,800

Dividends 15,000

Sales revenue 540,000

Costs of goods sold 250,000

Salaries expense 134,000

Rent expense 29,000

Depreciation expense 44,000

Interest expense 3,400

Advertising expense 3,900

Totals 1,140,600 1,140,600

Required -

1) Record the entry to close the revenue accounts.

2) Record the entry to close the expense accounts.

3) Record the entry to close the dividend accounts.