The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Owner, Capital, $63,500; Owner, Withdrawals, $2,000; Sales, $56,000; Sales Returns and Allowances, $3,000; Sales Discounts, $1,500; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances.

Note: Enter debits before credits.

DateGeneral JournalDebitCredit

December 31

Income summary

Depreciation expense

Salaries expense

Sales discounts

Sales returns and allowances

To prepare the journal entries for the income summary and close the temporary accounts, we need to summarize the revenue and expense accounts. Here's how to do it:

### General Journal Entries

**Date: December 31**

| Account Title                          | Debit       | Credit      |
|----------------------------------------|-------------|-------------|
| **Income Summary**                     | 18,500      |             |
| **Sales**                              |             | 56,000      |
| **Sales Returns and Allowances**       | 3,000       |             |
| **Sales Discounts**                    | 1,500       |             |
|                                        |             |             |
| **Depreciation Expense**               | 25,000      |             |
| **Salaries Expense**                   | 23,000      |             |
|                                        |             |             |
| **Income Summary**                     |             | 18,500      |

### Explanation:
1. **Revenue Calculation:**
   - Total Sales: $56,000
   - Less: Sales Returns: $3,000
   - Less: Sales Discounts: $1,500
   - **Net Sales:** $56,000 - $3,000 - $1,500 = $51,500

2. **Expense Calculation:**
   - Total Expenses: $25,000 (Depreciation) + $23,000 (Salaries) = $48,000

3. **Net Income:**
   - **Net Income:** Net Sales - Total Expenses = $51,500 - $48,000 = $3,500

### Summary of Journal Entries:
- Close temporary accounts to the Income Summary.
- Transfer net income to the Income Summary.

Would you like any further details on this, or do you have any questions? Here are some related questions you might consider:

1. What is the purpose of closing temporary accounts?
2. How does net income affect the owner’s equity?
3. What accounts will be closed at year-end?
4. How do you calculate total assets and liabilities from this trial balance?
5. What are the steps in the accounting cycle after preparing an adjusted trial balance? 

**Tip:** Always ensure to verify the net income by double-checking your revenue and expense calculations before making closing entries.

The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Owner, Capital, $63,500; Owner, Withdrawals, $2,000; Sales, $56,000; Sales Returns and Allowances, $3,000; Sales Discounts, $1,500; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Income summary Depreciation expense Salaries expense Sales discounts Sales returns and allowances.

Explore the process of closing temporary accounts in accounting by preparing journal entries for the income summary. This includes calculations for net sales and net income, along with a detailed overview of the relevant accounts. Ideal for college-level accounting students.

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