Brief Exercise 4-5

The ledger of Rios Company contains the following balances: Owners Capital $28,227; Owners Drawings $2,686; Service Revenue $48,573; Salaries and Wages Expense $25,099; and Supplies Expense $6,410.

The closing entries are as follows:

(1) Close revenue accounts.

(2) Close expense accounts.

(3) Close net income/(loss).

(4)Close drawings.