The following account balances were taken from Cal Tour Corporation?year-end adjusted trial balance fassume these are the company's only temporary accounts): Dividends __ 600 Service revenue __ 19.80 o Supplies expense __ 525 Rent expense __ 3.660 Depreciation expense equipment __ 1,200 Sataries expense __ 12.7010 Income taxes expense __ 615 Prepare the company's necessary closing entries.

To prepare the closing entries for Cal Tour Corporation, we need to close out the temporary accounts (revenues, expenses, and dividends) to prepare for the next accounting period. The temporary accounts are transferred to the Income Summary account, which is then closed to the owner's capital account.<br /><br />Here are the closing entries for Cal Tour Corporation:<br /><br />1. Close Service Revenue to Income Summary:<br /> Debit: Service Revenue $19,800<br /> Credit: Income Summary $19,800<br /><br />2. Close Supplies Expense to Income Summary:<br /> Debit: Income Summary $525<br /> Credit: Supplies Expense $525<br /><br />3. Close Rent Expense to Income Summary:<br /> Debit: Income Summary $3,660<br /> Credit: Rent Expense $3,660<br /><br />4. Close Depreciation Expense to Income Summary:<br /> Debit: Income Summary $1,200<br /> Credit: Depreciation Expense $1,200<br /><br />5. Close Salaries Expense to Income Summary:<br /> Debit: Income Summary $12,710<br /> Credit: Salaries Expense $12,710<br /><br />6. Close Income Taxes Expense to Income Summary:<br /> Debit: Income Summary $615<br /> Credit: Income Taxes Expense $615<br /><br />7. Close Income Summary to Owner's Capital:<br /> If the Income Summary has a credit balance (net income), debit Income Summary and credit Owner's Capital.<br /> If the Income Summary has a debit balance (net loss), debit Owner's Capital and credit Income Summary.<br /><br />8. Close Dividends to Owner's Capital:<br /> Debit: Owner's Capital $600<br /> Credit: Dividends $600<br /><br />These closing entries ensure that the temporary accounts are reset to zero, and the net income or net loss for the period is transferred to the owner's capital account.