Question

The partial worksheet for the Jamison Company showed the following data on October 31, 2019. Income Balance Statement SheetAccount Name Debit Credit Debit Credit Jason Jamison, Capital 30,000 Jason Jamison, Drawing 1,500 Fees Income 26,000 Salaries Expense 10,400 Rent Expense 1,000 Supplies Expense 400 Utilities Expense 500 Depr. Exp. −Equip. 850 Totals 13,150 20,000 41,650 34,800 Net Income 6,850 6,850 20,000 20,000 41,650 41,650 Prepare the closing entries for Jamison Company on October 31, 2019.Record entry to transfer expenses to income summary.Date General Journal Debit Credit Oct 31, 2019 Date General Journal Debit Credit Oct 31, 2019 Record entry to transfer net income or net loss from income summary to capital. Date General Journal Debit Credit Oct 31, 2019 Record entry to transfer drawings to capital account.Date General Journal Debit Credit Oct 31, 2019

Answer 1

Answer and Explanation:

The Journal entries are shown below:-

1. Fee Income  Dr, $26,000

           To Income Summary $26,000

(Being transfer of fees income is recorded)

2. Income Summary   Dr, $13,150

        To Utilities Expenses $500

        To Salaries Expenses $10,400

       To Rent Expenses $1,000

      To Supplies Expenses $400

      To Depreciation Expenses-Equipment $850

(Being transfer of all expense is recorded)

3. Income Summary  Dr, $6,850

        To Jason Jamison, Capital $6,850

(Being capital transfer is recorded)

4. Jason Jamison, Capital  Dr, $1,500

            To Jason Jamison, Drawing $1,500

(Being transfer drawings to capital account  is recorded)