Need help with adjusted trial balance accounting quiz tomorrow?

[croslea]

Adjusted trial balance
December 31,2011
Cash $15,000
Accounts Receivable 7,000
Prepaid Insurance 2,300
Land 12,000
Building 25,000
Accumulated Depreciation – building $ 2,000
Trademark 3,000
Accounts Payable 4,000
Unearned Revenue 2,500
Mortgage Payable ($5,000 payable in 2009) 15,000
Retained Earnings 27,500
Dividends 5,000
Service Revenue 26,000
Insurance Expense 4,200
Interest Expense 1,500
Depreciation Expense building 2,000
Total 77,000 77,000

[joachim]

Adjusted trial balance
December 31,2011
Cash $15,000
Accounts Receivable 7,000
Prepaid Insurance 2,300
Land 12,000
Building 25,000
Accumulated Depreciation – building $ 2,000
Trademark 3,000
Accounts Payable 4,000
Unearned Revenue 2,500
Mortgage Payable ($5,000 payable in 2009) 15,000
Retained Earnings 27,500
Dividends 5,000
Service Revenue 26,000
Insurance Expense 4,200
Interest Expense 1,500
Depreciation Expense building 2,000
Total 77,000 77,000

If an account has a credit balance you close it out with a debit. If it has a debit balance you close it with a credit.

Close revenue accounts to income summary:
Dr Service Revenue 26,000
Cr Income Summary 26,000

Close expense accounts to income summary
Dr Income Summary 7,700
Cr Insurance Expense 4,200
Cr Interest Expense 1,500
Cr Depreciation Expense--Building 2,000

Close out income summary to retained earnings.
After closing the revenue and expense accounts, income summary now has a credit balance (gain) of 18,300.
Dr Income Summary 18,300
Cr Retained Earnings 18,300

Close out dividends to retained earnings.
Dr Retained Earnings 5,000
Cr Dividends 5,000

Retained Earnings now has a balance (credit) of 27,500 + 18,300 - 5,000 = 40,800