Closing Entries for a Merchandising Company: Aaron Distributing, Inc. just compl

Question

Closing Entries for a Merchandising Company: Aaron Distributing, Inc. just completed its first year of business. Please prepare the necessary closing entries for the business. AARON DISTRIBUTING, INC Adjusted Trial Balance December 31, 2003 DR $6,140 2,350 3,180 12,500 CR Cash Accounts receivable Prepaid insurance Vehicle Accumulated depreciation-vehicle Office equipment Accumulated depreciation- office equipment Accounts payable Notes payable Wages payable Capital stock Retained Earnings* Dividend Fees earned Fee Discounts Fee Allowances Advertising expense Depreciation expense nsurance expense Interest expense Maintenance expense Utilities expense Wages expense Total S1,000 25,400 3,630 1,930 7,500 2,170 25,000 1,000 46,750 750 500 6,000 4,630 1,200 750 2,450 5,780 15,350 $87,980 $87,980 0 *Retained Earnings has no balances until after the first year

Explanation / Answer

31-Dec Fees earned 46750         Income Summary 46750 31-Dec Income Summary 37410     Fee discounts 750     Fee allowances 500     Advertising expense 6000     Depreciation expense 4630     Insurance expense 1200     Interest expense 750      Mainteanance expense 2450      Utilities expense 5780      Wages expense 15350 31-Dec Income Summary 9340         Retained earnings 9340 31-Dec Retained earnings 1000          Dividends 1000

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