The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:
Accounts Debit Credit
Cash $ 11,000
Accounts receivable 150,000
Prepaid rent 5,000
Supplies 25,000
Equipment 300,000
Accumulated depreciation $ 135,000
Accounts payable 20,000
Salaries payable 4,000
Interest payable 1,000
Notes payable (due in two years) 30,000
Common stock 200,000
Retained earnings 50,000
Dividends 20,000
Service revenue 400,000
Salaries expense 180,000
Advertising expense 70,000
Rent expense 15,000
Depreciation expense 30,000
Interest expense 2,000
Utilities expense 32,000
Totals $ 840,000 $ 840,000
Prepare an income statement for China Tea Company for the year ended December 31, 2021:
Prepare a classified balance sheet for China Tea Company as of December 31, 2021.(Amounts to be deducted should be indicated with a minus sign.)
Prepare the closing entries for China Tea Company for the year ended December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
