An individual leaves a collegeâ faculty, where she was earning â$80,000 aâ year, to begin a new venture. She invests her savings
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Answer:
Explanation:
The closing entries for the following accounts are shown below:
1. Service Revenue A/c Dr $44,000
To Income Summary $ 44,000
(Being revenue account closed)
2. Income Statement Dr $33,100
To Depreciation Expense of Equipment $3000
To Salaries Expense $22,000
To Insurance Expense $2,500
To Rent Expense $3,400
To Supplies Expense $2,200
(Being expenses accounts are closed)
3. Income summary A/c Dr $10900
To T. Cruz Capital A/c $10900
(Being the difference is credited to capital account)
4. T. Cruz, Capital A/c Dr $7,000
To T. Cruz, Withdrawals A/c $7,000
(Being withdrawal account is being closed)
The preparation of the trial balance is presented in the spreadsheet. Kindly find the attachment below:
