The adjusted trial balance for Cowboy Company follows: Cowboy Company Adjusted Trial Balance December 31, 2020 ACCOUNT NAMEDEBITCREDIT Cash 156,750 Accounts Receivable 4,500 Prepaid Rent 7,800 Building 145,000 Accumulated Depreciation - Building 65,000 Accounts Payable 5,500 Salaries Payable 1,300 Interest Payable 2,000 Unearned Revenue 24,000 Notes Payable 60,000 Cowboy, Capital 98,000 Cowboy, Withdrawals 22,000 Fees Earned 156,000 Wages Expense 35,000 Rent Expense 20,100 Supplies Expense 7,800 Utilities Expense 3,600 Depreciation Expense 9,000 Interest Expense 250 Totals411,800411,800 Prepare the closing journal entries

Cowboy Company

Closing Entries:

Debit Fees Earned 156,000

Credit Income Summary 156,000

To close the revenue account to the income summary.

Debit Income Summary 75,750

Credit:

 Wages Expense 35,000

 Rent Expense 20,100

 Supplies Expense 7,800

 Utilities Expense 3,600

 Depreciation Expense 9,000

 Interest Expense 250

To close the expenses to the income summary.

Debit Net Income 80,250

Credit Cowboy, Capital 80,250

To close the income summary to the Capital account.

Explanation:

a) Data and Calculations:

Cowboy Company

Adjusted Trial Balance

December 31, 2020

ACCOUNT NAME              DEBIT     CREDIT

Cash                                156,750

Accounts Receivable         4,500

Prepaid Rent                      7,800

Building                          145,000

Accumulated Depreciation - Building 65,000

Accounts Payable                                  5,500

Salaries Payable                                     1,300

Interest Payable                                    2,000

Unearned Revenue                            24,000

Notes Payable                                    60,000

Cowboy, Capital                                 98,000

Cowboy, Withdrawals   22,000

Fees Earned                                    156,000

Wages Expense            35,000

Rent Expense                20,100

Supplies Expense           7,800

Utilities Expense            3,600

Depreciation Expense  9,000

Interest Expense             250

Totals                          411,800         411,800

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disadvantages of leasing a vehicle: no vehicle equity and mileage limitations

disadvantages of purchasing a vehicle: large down payment and vehicle depreciation

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