Question

Paloma Company shows the following balances in selected accounts of its adjusted trial balance. Supplies $32,000 Supplies Expense 6,000 Accounts Receivable 12,000 Dividends 22,000 Retained Earnings 70,000 Service Revenue 108,000 Salaries and Wages Expense 40,000 Utilities Expense 8,000 Rent Expense 18,000 Prepare the remaining closing entries at December 31

Answer 1

Answer:

Closing entries

Date  account and explanation                    Debit           Credit

Dec 31  Service revenue                               108000  

Income summary                                                         1080000

(To close revenue)    

   

Dec 31  Income summary                           72000  

Supplies expense                                                         6000

Salaries and wages expense                                 40000

Utilities expense                                                          8000

rent expense                                                                  18000

(To close expense)    

   

Dec 31  Income summary                            36000  

Owner's capital                                                         36000

(To close income summary)    

   

Dec 31  Owner's capital                           22000  

Owner's Drawing                                                         22000

(To close withdrawal)