Question

total liabilities and stockholders equity
$ 44,740
requirement 1. journalize the closing entries and post to the t - accounts
( begin by journalizing the closing entries (record debits first, then credits. exclude explanations from journal entries )
closing 1: close revenues.
use the income statement columns of the worksheet completed in requirement 4.

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income statement columns of worksheet
accounts payable
salaries payable
unearned revenue
common stock
dividends
service revenue
salaries expense
depreciation expense - truck
insurance expense
fuel expense
rent expense
supplies expense
subtotal
net income or loss
total
23,650
2,600
100
150
400
2,300
500
6,110 23,650
17,540
23,650
23,650

Explanation:

Step1: Close revenues

Service Revenue has a credit balance of $23,650$. To close it, we debit Service Revenue and credit Income Summary.
$$\text{Debit: Service Revenue } 23,650$$
$$\text{Credit: Income Summary } 23,650$$

Step2: Close expenses

The total of expenses (Salaries Expense $2,600$ + Depreciation Expense - Truck $100$ + Insurance Expense $150$ + Fuel Expense $400$ + Rent Expense $2,300$ + Supplies Expense $500$) is $6,110$. We debit Income Summary and credit each expense account.
$$\text{Debit: Income Summary } 6,110$$
$$\text{Credit: Salaries Expense } 2,600$$
$$\text{Credit: Depreciation Expense - Truck } 100$$
$$\text{Credit: Insurance Expense } 150$$
$$\text{Credit: Fuel Expense } 400$$
$$\text{Credit: Rent Expense } 2,300$$
$$\text{Credit: Supplies Expense } 500$$

Answer:

Journal entry for closing revenues:

Date	Accounts	Debit	Credit
	Income Summary		$23,650$

Journal entry for closing expenses:

Date	Accounts	Debit	Credit
	Salaries Expense		$2,600$
	Depreciation Expense - Truck		$100$
	Insurance Expense		$150$
	Fuel Expense		$400$
	Rent Expense		$2,300$
	Supplies Expense		$500$