Question: The adjusted trial balance for China Tea Company at December 31, 2009 is presented below:
|
|
Debit
|
Credit
|
|
Cash
|
110,500
|
|
|
Accounts receivable
|
40,000
|
|
|
Supplies
|
5,000
|
|
|
Inventory
|
25,000
|
|
|
Equipment
|
300,000
|
|
|
Accumulated depreciation - equipment
|
|
125,000
|
|
Accounts payable
|
|
25,000
|
|
Notes payable
|
|
30,000
|
|
Unearned revenue
|
|
4,000
|
|
Interest payable
|
|
1,000
|
|
Capital stock
|
|
200,000
|
|
Retained Earnings
|
|
50,000
|
|
Dividends
|
5,000
|
|
|
Service revenue
|
|
400,000
|
|
Cost of Goods Sold
|
180,000
|
|
|
Wage expense
|
120,000
|
|
|
Depreciation expense
|
30,000
|
|
|
Rent expense
|
15,000
|
|
|
Supplies Expense
|
2,500
|
|
|
Interest expense
|
2,000
|
_______
|
|
Totals
|
835,000
|
835,000
|
[A] Make the closing entries for China Tea Company for the year ended December 31, 2009 in proper format [omit explanations].
[B] Make Statement of Retained Earnings for the year ended December 31, 2009 in proper format.