M4-14 through M4-17 Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5]

[The following information applies to the questions displayed below.]

The Sky Blue Corporation has the following adjusted trial balance at December 31.

Debit Credit
Cash $ 1,230
Accounts Receivable 2,000
Prepaid Insurance 2,300
Notes Receivable (long-term) 3,000
Equipment 12,000
Accumulated Depreciation $ 2,600
Accounts Payable 5,420
Salaries and Wages Payable 1,000
Income Taxes Payable 2,900
Deferred Revenue 600
Common Stock 2,400
Retained Earnings 1,000
Dividends 300
Sales Revenue 42,030
Rent Revenue 300
Salaries and Wages Expense 21,600
Depreciation Expense 1,300
Utilities Expense 4,220
Insurance Expense 1,400
Rent Expense 6,000
Income Tax Expense 2,900
Total $ 58,250 $ 58,250
M4-17

Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)