Patel Insurance Agency reported the following items at September 30

Price: $


S4-7 3 Posting closing entries [5 min]
Patel Insurance Agency reported the following items at September 30:

Sales and marketing expense $1,600
Cash $1,300
Other assets 700
Service revenue 4,000
Depreciation expense 900
Patel, capital 500
Long-term liabilities 600
Accounts receivable900

Requirements

1. Prepare T-accounts for Patel Insurance Agency. Insert the account balances prior to closing. Post the closing entries to the affected T-accounts, and show each account’s ending balance after closing. Also show the Income summary T-account. Denote a balance as Bal and a closing entry amount as Clo.