Question

After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Nuclear Landscaping Co.:________.
Felix Godwin, Capital $643,600
Felix Godwin, Drawing 10,500
Fees Earned 356,500
Wages Expense 283,100
Rent Expense 56,000
Supplies Expense 11,500
Miscellaneous Expense 13,000
Journalize the two entries required to close the accounts.

Answer 1

Answer:

April 30

Dr Fees earned 356,500

Cr Income summary356,500

April 30

Dr Income summary 363,600

Cr Wages expense 283,100

Cr Rent expense 56,000

Cr Supplies expense 11,500

Cr Miscellaneous expense 13,000

April 30

Dr Felix Goodwin, capital 7,100

Cr Income summary 7,100

April 3.0

Dr Felix Goodwin, capital 10,500

Cr Felix Goodwin, drawing 10,500

Explanation:

Preparation of the journal entry for the two entries required to close the accounts.

April 30

Dr Fees earned 356,500

Cr Income summary356,500

April 30

Dr Income summary 363,600

(283,100+56,000+11,500+13,000)

Cr Wages expense 283,100

Cr Rent expense 56,000

Cr Supplies expense 11,500

Cr Miscellaneous expense 13,000

April 30

Dr Felix Goodwin, capital 7,100

Cr Income summary 7,100

(363,600-356,500)

April 3.0

Dr Felix Goodwin, capital 10,500

Cr Felix Goodwin, drawing 10,500