On December 31, after adjustments, Gonzalez Company\'s ledger contains the follo
ID: 2395568 • Letter: O
Question
On December 31, after adjustments, Gonzalez Company's ledger contains the following account balances 101 Cash 111 Accounts Receivable 121 Supplies 131 Prepaid Rent 141 Equipment 142 Accumulated Depreciation-Equip. 202 Accounts Payable 301 Emilio Gonzalez, Capital (12/1/2019) 302 Emilio Gonzalez, Drawing 401 Fees Income 511 Advertising Expense 514 Depreciation Expense-Equip. 517 Rent Expense 519 Salaries Expense 523 Utilities Expense $ 39,200 Dr. 17,000 Dr 3,200 Dr 39,800 Dr 56,000 Dr. 1,600 Cr. 7,700 Cr. 57,620 Cr. 7,400 Dr. 143,120 Cr. 5,000 Dr 920 Dr. 3,800 Dr 30,800 Dr 6,920 Dr Required 1. Journalize the closing entries in the general journal. 2. Post the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances Analyze: What is the balance of the Salaries Expense account after closing entries are posted? Complete this question by entering your answers in the tabs below. Required Required2 Analyze ournalize the closing entries in the general journal View transaction list Journal entry worksheet 4Explanation / Answer
Requirement (1) – Closing Entries in the General Journal
Date
General Journal
Debit ($)
Credit ($)
December 31
Fess Income A/c
143,120
To Income Summary
143,120
[To close Revenue Account]
December 31
Income Summary A/c
47,440
To Advertising Expenses A/c
5,000
To Depreciation Expense – Equipment
920
To Rent Expenses A/c
3,800
To Salaries Expenses A/c
30,800
To Utilities Expenses A/c
6,920
[To Close Expense Accounts]
December 31
Income Summary
95,680
To Emillio Gonzalez – Capital A/c
95,680
[To Transfer net Income to Capital Account]
December 31
Emillio Gonzalez – Capital A/c
7,400
To Emillio Gonzalez – Drawing A/c
7,400
[To Record the Drawings]
Date
General Journal
Debit ($)
Credit ($)
December 31
Fess Income A/c
143,120
To Income Summary
143,120
[To close Revenue Account]
December 31
Income Summary A/c
47,440
To Advertising Expenses A/c
5,000
To Depreciation Expense – Equipment
920
To Rent Expenses A/c
3,800
To Salaries Expenses A/c
30,800
To Utilities Expenses A/c
6,920
[To Close Expense Accounts]
December 31
Income Summary
95,680
To Emillio Gonzalez – Capital A/c
95,680
[To Transfer net Income to Capital Account]
December 31
Emillio Gonzalez – Capital A/c
7,400
To Emillio Gonzalez – Drawing A/c
7,400
[To Record the Drawings]
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