The adjusted trial balance for China Tea Company at December 31, 2013, is presen
ID: 2417606 • Letter: T
Question
The adjusted trial balance for China Tea Company at December 31, 2013, is presented below:
Debit
Credit
Cash
10,500
Accounts receivable
150,000
Prepaid rent
5,000
Inventory
25,000
Equipment
300,000
Accumulated depreciation-equipment
125,000
Accounts payable
30,000
Notes payable-due in three months
30,000
Salaries payable
4,000
Interest payable
1,000
Capital stock
200,000
Retained earnings
50,000
Sales Revenue
400,000
Cost of goods sold
180,000
Salaries expense
120,000
Rent expense
15,000
Depreciation expense
30,000
Interest expense
2,000
Advertising expense
2,500
Totals
840,000
840,000
Prepare the closing entries for China Tea Company for the year ended December 31, 2013.
Debit
Credit
Cash
10,500
Accounts receivable
150,000
Prepaid rent
5,000
Inventory
25,000
Equipment
300,000
Accumulated depreciation-equipment
125,000
Accounts payable
30,000
Notes payable-due in three months
30,000
Salaries payable
4,000
Interest payable
1,000
Capital stock
200,000
Retained earnings
50,000
Sales Revenue
400,000
Cost of goods sold
180,000
Salaries expense
120,000
Rent expense
15,000
Depreciation expense
30,000
Interest expense
2,000
Advertising expense
2,500
Totals
840,000
840,000
Explanation / Answer
Closing Entries for China Tea company for the year ended December 31,2013 1. Closing Income accounts to Income Summary Date Account Titles Debit Credit Dec-31 Sales Revenue 4,00,000 Income summary 4,00,000 2 Closing all expense accounts to Income Summary Date Account Titles Debit Credit Dec-31 Income Summary 3,49,500 Cost of goods sold 1,80,000 Salaries Expenses 120000 Rent Expenses 15,000 Depreciation Expenses 30,000 Interest expense 2000 Advertising Expense 2,500 3 Closing of Income Summary account to Capital account Date Account Titles Debit Credit Dec-31 Income Summary 50,500 Retained Earnings 50,500
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.