Question

Stylist Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances were taken from the ledger of Stylist Services Co:
Marlena Fenton, Capital $1,060,000
Marlena Fenton, Drawing 75,000
Fees Earned 618,200
Wages Expense 388,400
Rent Expense $60,000
Supples Expense 19,500
Miscellaneous Expense 6,150
Journalize the two entries required to close the accounts

Answer 1

Answer:

Stylist Services Co.

July31

Debit Fees Earned 618,200

Credit Wages Expense388,400

Credit Rent Expense60,000

Credit Supplies Expense19,500

Credit Miscellaneous Expense 6,150

Credit Marlena Fenton, Capital 144,150

July 31

Debit Marlena Fenton, Capital75,000

Credit Marlena Fenton, Drawing 75,000

Explanation:

Calculation of Marlena Fenton, Capital

Fees Earned 618,200

Less Wages Expense (388,400)

Less Rent Expense (60,000)

Less Supplies Expense (19,500)

Less Miscellaneous Expense ( 6,150)

= Marlena Fenton, Capital 144,150