Question

The adjusted ledger accounts of RD Consulting on December 31, 2019, appear as follows.

Answer 1

Answer:

See explanation section

Explanation:

Requirement A

Balance Sheet and Income Statement = See image below

Requirement B

                                RD Consulting

                               Closing Entries

December 31  Fees Income      Debit      15,300

                        Income Summary        Credit         15,300

(To close the revenues)

December 31  Income Summary      Debit           $5,820

                        Supplies Expense                          Credit         $730

                        Insurance Expense                        Credit            580

                  Depreciation Expense–Equipment    Credit            530

                        Salaries Expense                            Credit         3,000

                        Utilities Expense                            Credit            980

(To close the expenses)

December 31  Income Summary      Debit      $9,480

                        Roger Dye, Capital        Credit         $9,480

($15,300 - 5,820) = $9,480

(To close income summary to capital)

December 31    Roger Dye, Capital    Debit   3,300  

                         Roger Dye, Drawing      Credit     3,300

(To close the drawings to capital)