Assume the account number for income summary is 901.2
1 answer:
Answer and Explanation:
The closing entries are shown below
a. Service revenue Dr $44,000
To Income summary $44,000
(being the service account is closed)
b. Income summary Dr $33,100
To Depreciation expense - equipment $3,000
To Salaries expense $22,000
To Insurance expense $2,500
To Rent supplies $3,400
To Supplies expense $2,200
(being the expenses are closed)
c. Income summary $10,900
To C capital $10,900
(Being the income summary to capital is recorded)
4. C capital Dr $7,000
To C withdrawals $7,000
(Being withdrawals of C capital is recorded)
The post closing trial balance is presented below;
<u>Particulars Debit Credit</u>
Cash $19,000
Supplies $13,000
Prepaid insurance $3,000
Equipment $24,000
Accumulated
depreciation $7,500
Capital
($47,600 + $10,900 - $7,000) $51,500
<u>Total $59,000 $59,000</u>
You might be interested in