The adjusted trial balance for Yondel Company at December 31, 2018 is presented below: Accounts Debit Credit Cash $ 8,000 Prepaid rent 23,000 Land 445,000 Accounts payable $ 12,000 Salaries payable 20,000 Common stock 230,000 Retained earnings 109,000 Dividends 14,000 Service revenue 340,000 Salaries expense 160,000 Rent expense 29,000 Utilities expense 32,000 Totals $ 711,000 $ 711,000 Prepare the closing entries for Yondel Company for the year ended December 31, 2018.

Explanation:

Cash                        =8000

Prepaid rent           = 23,000

Land                       = 445000

Accounts payable                              = 12,000

Salaries payable                                  = 20,000

Retained earnings                              = 109,000

Dividends                    = 14,000

Service revenue                                   = 340,000

Salaries expenses      = 160,0000

Rent expenses             = 29,000

Utilities expenses         = 32,000

Net income = Service revenue - Salaries-Rent-Utilities-

=340,000-160,000-29,000-32,000 = 119,000

                                                       Journal

1.     Debit  Service revenue   - 340,000

      Credit income summary -                  340,000

2,    Debit Income summary -    221,000

      Credit Salaries expenses                              160,000

      Credit Rent expenses                                     29,000

      Credit Utilities expenses                                 32,000

3     Debit Income summary          119,000

      Credit retained earnings                                  119,000

4     Debit retained earnings          14,000

      Credit retained earnings                                   14,000