The adjusted trial balance of Winterhaven Services at December 31, 2025 is shown below.
| Account | Dr | Cr |
|---|
| Cash | 9,800 | |
| Accounts Receivable | 7,200 | |
| Supplies | 1,400 | |
| Equipment | 30,000 | |
| Accumulated Depreciation - Equipment | | 9,000 |
| Accounts Payable | | 4,600 |
| Unearned Service Revenue | | 2,200 |
| Share Capital - Ordinary | | 25,000 |
| Retained Earnings | | 8,200 |
| Dividends | 4,000 | |
| Service Revenue | | 62,000 |
| Salaries and Wages Expense | 41,000 | |
| Rent Expense | 12,000 | |
| Supplies Expense | 2,600 | |
| Depreciation Expense | 3,000 | ____ |
| Totals | 111,000 | 111,000 |
Instructions:
- Prepare the four closing entries at December 31, 2025, using an Income Summary account: close revenues, close expenses, close Income Summary to Retained Earnings, and close Dividends.
- Prepare the post-closing trial balance at December 31, 2025. Only permanent (statement of financial position) accounts survive closing.