Question

Other data not yet recorded at December 31 include Insurance expired during the current year, $6. Wages payable, $4. Depreciation expense for the current year, $9. Income tax expense, $7. Required: 2. Using the adjusted balances, give the closing entry for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.)

Answer 1

Answer: Please refer to the explanation section for journals

Explanation:

DR = DEBIT CR = CREDIT

DR Insurance expense 6000

CR      Prepaid insurance  6000

expired insurance expense.  prepaid asset account decreases on the credit side .The Prepaid insurance asset should be reduced when insurance expires.

DR Wages expense   4000

CR      Wages Payable   4000

wages payable (liability) increases because of wages incurred during the year increase .Wages payable account increases on the credit side  

DR Depreciation expense  9000

CR      Accumulated Depreciation 9000

depreciation expense increase the accumulated depreciation account

accumulated depreciation account increases on the credit side

DR Income Tax expense     7000

CR      Income tax payable (liability) 7000

Income tax expense incurred during the year.

income tax expense incurred during the year increases income tax payable (liability) . Income tax payable increases on the credit side

Answer 2

Answer:

Using the adjusted balances, give the closing entry for the current year.

Explanation:

1  

Db Insurance expense  6000  

Cr Prepaid expenses           6000

 

2  

Db Wages payable 4000  

Cr Cash                                4000

 

3  

Db Depreciation expense 9000  

Cr Accumulate depreciation     9000

 

4  

Db Income tax expense 7000  

Cr Tax payable                      7000