Type your question here Exercise 4-7 Lanza Company had the following adjusted tr
ID: 2371641 • Letter: T
Question
Type your question here
Exercise 4-7 Lanza Company had the following adjusted trial balance.LANZA COMPANY
Adjusted Trial Balance
For the Month Ended June 30, 2014 Adjusted Trial Balance Account Titles Debit Credit Cash $3,712 Accounts Receivable 3,904 Supplies 480 Accounts Payable $1,556 Unearned Service Revenue 160 Common Stock 4,000 Retained Earnings 1,760 Dividends 600 Service Revenue 4,300 Salaries and Wages Expense 1,344 Miscellaneous Expense 180 Supplies Expense 1,900 Salaries and Wages Payable 344 $12,120 $12,120 (a) Prepare closing entries at June 30, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation Debit Credit 1. (To close revenue account.)
2. (To close expense accounts)
3. (To close net income / (loss).)
4. (To close dividends)
Explanation / Answer
DR = Debit, CR = Credit
1. To close Revenue account:
DR Revenue 4,300
CR Income Summary 4,300
2. To close Expense accounts:
DR Income Summary $3424
CR Salaries and Wages Expense 1,344
CR Miscellaneous Expense 180
CR Supplies Expense 1,900
3. To close Net income/loss
DR Income Summary 876
CR Retained Earnings 876
4. To close dividends
DR Retained Earnings 600
CR Dividends 600
Instructions on how to close out temporary accounts at the end of the period:
http://www.cliffsnotes.com/study_guide/Closing-Entries.topicArticleId-21081,articleId-21026.html
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