The Adjusted Trial Balance of the Thomas Company Follows Prepare the Closing Entries for Thomas Company

Essay

The adjusted trial balance of the Thomas Company follows:
$\begin{array}{c} \text {THOMAS COMPANY}\\ \text {Adjusted Trial Balance}\\ \text {December 31}\\\begin{array}{|l|r|l|}\hline &\text { Debit } & \text { Credit } \\\hline \text { Cash } & 8,000 & \\\hline \text { Prepaid insurance } & 2,400 & \\\hline \text { Equipment } & 18,000 & \\\hline \text { Accumulated depreciation - Equipment } & & 3,600 \\\hline \text { Salaries payable } & & 2,000 \\\hline \text { Unearned repair fees } & & 1,200 \\\hline \text { Common stock } & & 4,000 \\\hline \text { Retained earnings } & & 7,400\\\hline\text { Dividends } & 4,000 \\\hline \text { Repair fees earned } & & 27,500 \\\hline \text { Salaries expense } & 10,000 & \\\hline \text { Depreciation expense } & 1,800 & \\\hline \text { Insurance expense } & 1,500 & \\\hline \text { Totals } & 45,700 & 45,700 \\\hline \end{array}\end{array}$
Prepare the closing entries for Thomas Company.