closing entries\nusing the same facts as given for adjusting entries, complete closing journal…

Explanation:

Step1: Close revenue accounts

Debit Service Revenue for its balance of $10,500 and credit Income Summary for the same amount to transfer revenue to Income Summary. $$\text{Debit: Service Revenue } 10,500$$ $$\text{Credit: Income Summary } 10,500$$

Step2: Close expense accounts

Debit Income Summary for the total of all expense accounts ($5,000 + $4,000+ $1,000 = $10,000) and credit each expense account (Depreciation Expense, Wages Expense, Insurance Expense) for their respective balances. $$\text{Debit: Income Summary } 10,000$$ $$\text{Credit: Depreciation Expense } 5,000$$ $$\text{Credit: Wages Expense } 4,000$$ $$\text{Credit: Insurance Expense } 1,000$$

Step3: Close Income Summary

The balance in Income Summary is $10,500 - 10,000= $500 (credit balance). Debit Income Summary for $500 and credit Retained Earnings for $500 to transfer the net - income to Retained Earnings. $$\text{Debit: Income Summary } 500$$ $$\text{Credit: Retained Earnings } 500$$

Answer:

The closing journal entries are as follows:

Account	Dr	Cr
Service Revenue	10,500
Income Summary		10,500
Income Summary	10,000
Depreciation Expense		5,000
Wages Expense		4,000
Insurance Expense		1,000
Income Summary	500
Retained Earnings		500