Indicate what accounts are debited or credited and indicate the type of transaction as:
1) an external transaction,
2) internal transaction recorded as an adjusting journal entry, or
3) closing entry. The company uses a perpetual inventory system.
All prepayments are initially recorded in permanent accounts.
1) Wages have been earned but are unpaid at the end of an accounting period.
2) Closed the income summary account, assuming there was a net income for the period.
3) Paid property taxes that have already been accrued.
4) Declared cash dividends on common stock.
5) Paid rent for the next three months.