The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: DebitCreditCash 10,500 Accounts receivable 150,000 Prepaid rent 5,000 Inventory 25,000 Equipment 300,000 Accumulated depreciation—equipment 125,000 Accounts payable 30,000 Notes payable—due in three months 30,000 Salaries payable 4,000 Interest payable 9,000 Common stock 200,000 Retained earnings 50,000 Dividends 8,000 Sales revenue 400,000 Costs of goods sold 180,000 Salaries expense 120,000 Rent expense 15,000 Depreciation expense 30,000 Interest expense 2,000 Advertising expense 2,500 Totals 848,000 848,000 Required:Prepare the closing entries for China Tea Company for the year ended December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Income Statement Particulars Amount Sales revenue 400,000 Less: Costs of goods sold…

Answered: The adjusted trial balance for China…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 14E

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

	Debit	Credit
Cash		10,500
Accounts receivable		150,000
Prepaid rent		5,000
Inventory		25,000
Equipment		300,000
Accumulated depreciation—equipment			125,000
Accounts payable			30,000
Notes payable—due in three months			30,000
Salaries payable			4,000
Interest payable			9,000
Common stock			200,000
Retained earnings			50,000
Dividends		8,000
Sales revenue			400,000
Costs of goods sold		180,000
Salaries expense		120,000
Rent expense		15,000
Depreciation expense		30,000
Interest expense		2,000
Advertising expense		2,500
Totals		848,000	848,000

Required:
Prepare the closing entries for China Tea Company for the year ended December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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