Question

Closing Entries After the accounts have been adjusted at March 31, the end of the fiscal year, the following balances were taken from the ledger of Cabriolet Services Co.: Retained Earnings $378,110 Dividends 35,000 Fees Earned 548,480 Wages Expense 360,100 Rent Expense 86,400 Supplies Expense 32,410 Miscellaneous Expense 10,805 Journalize the two entries required to close the accounts. If an amount box does not require an entry, leave it blank. Nov. 30 Nov. 30

Answer 1

Answer:

Explanation:

The closing entries for the following accounts are shown below:

1. Fees Earned A/c Dr $548,480

         To Income Summary $548,480

(Being revenue account closed)

2. Income summary A/c Dr $489,715

              To Supplies Expense $32,410

              To Wages Expense $360,100

               To Miscellaneous Expense $10,805

                To Rent Expense $86,400

(Being expenses accounts are closed)