For this question its \"T\" accounts. i am not sure how to plug in the numbers i
ID: 2547208 • Letter: F
Question
For this question its "T" accounts. i am not sure how to plug in the numbers in the proper account. and on what side to put them.
APPLY THE CONCEPTS: Journalizing closing entries for the year ending December 31, 20--
Using the Adjusted Trial Balance, prepare the journal entry to close the revenue accounts. For grading purposes, close the revenue accounts in the order listed on the Adjusted Trial Balance.
If an amount box does not require an entry, leave it blank or enter "0".
+ Adjusted Trial Balance
373,600
APPLY THE CONCEPTS: Closing entries with T accounts
The closing process is illustrated in the following diagram with the use of T accounts. As you can see, Drawing is not closed to Income Summary but closed directly into Capital. This is because Drawing is not an expense and does not reduce net income.
Using the adjusted trial balance provided below, complete the closing entries in the following T accounts.
Adjusted Trial Balance For December 31, 20-- Cash 70,000 Accounts Receivable 29,000 Prepaid Insurance 16,000 Equipment 60,000 Accumulated Depreciation 40,000 Accounts Payable 10,000 Salaries Payable 8,000 Owner's Capital 20,000 Owner's Drawing 5,000 Fees Earned 175,200 Rent Revenue 120,400 Selling Expense 147,200 Depreciation Expense 46,400 373,600373,600
Explanation / Answer
answer:
Closing Journal entry will be as under
Desciption
Debit $
Credit $
Fees earned
175200
Rent revenue
120400
Income summary
295600
Income summary
193600
Selling Expense
147200
Depreciation Expense
46400
Income summary
102000
Owner's Capital
102000
Owner's capital
5000
Owner's Drawing
5000
And T account prasentation is as under
Owner's Capital
20,000
Closing
5,000
Closing
102000
Bal.
117,000
Income Summary
Selling Expense
147200
Fees earned
175200
Depreciation Expense
46400
Rent revenue
120400
Owner's Capital
102000
Owner's Drawing
5,000
Closing
5,000
Selling Expense
147,200
Closing
147,200
Fees Earned
Closing
175,200
175,200
Depreciation Expense
46,400
Closing
46,400
Rent Revenue
Closing
120,400
120,400
Desciption
Debit $
Credit $
Fees earned
175200
Rent revenue
120400
Income summary
295600
Income summary
193600
Selling Expense
147200
Depreciation Expense
46400
Income summary
102000
Owner's Capital
102000
Owner's capital
5000
Owner's Drawing
5000
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