Bob Evans owns a business, Beach side Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2010. Debit Credit
Cash ₱1,500
Accounts receivable 2,000
Interest receivable 100
Prepaid insurance 1,600
Notes receivable (long-term) 2,800
Equipment 15,000
Accumulated depreciation ₱3,000
Accounts payable 2,400
Accrued expenses payable 3,920
Income taxes payable 2,700
Unearned rent fees 500
Bob Evans, Capital 7,700
Bob Evans, Drawing 2,000
Rent fees earned 37,000
Furniture rental revenue 1,200
Interest revenue 100
Wages expense 19,000
Depreciation expense 1,800
Utilities expense 320
Insurance expense 700
Maintenance expense 9,000
Income tax expense 2,700
₱58,520 ₱58,520

a. Prepare the entry required to close the expense accounts at the end of the period.
b. Prepare the closing entry required to transfer the income or loss at the end of the period.
c. Prepare the entry required to close out the Drawing account at the end of the period.