Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to

Question:

Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm's worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the section of the worksheet are given below:
REVENUE AND EXPENSE ACCOUNTS
401 Fees Income.................................................................$200,000 Cr.
511 Depr. Expense-Office Equipment..........................................9,160 Dr.
514 Rent Expense..................................................................26,000 Dr.
517 Salaries Expense...............................................................99,000 Dr.
520 Supplies Expense...............................................................4,680 Dr.
523 Telephone Expense.............................................................2,700 Dr.
526 Travel Expense................................................................20,780 Dr.
529 Utilities Expense................................................................2,500 Dr.
DRAWING ACCOUNT
302 Gloria Johnson, Drawing.....................................................22,000 Dr.
INSTRUCTIONS
1. Record the adjusting entries in the general journal, page 3.
2. Record the closing entries in the general journal, page 4.
Analyze: What closing entry is required to close a drawing account?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...