CHART OF ACCOUNTS

Chandler Company

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
16	Prepaid Insurance
18	Equipment
19	Accumulated Depreciation-Equipment

	LIABILITIES
21	Accounts Payable
22	Salaries Payable
24	Income Taxes Payable

	EQUITY
31	Roscoe Chandler, Capital
32	Roscoe Chandler, Drawing

	REVENUE
41	Fees Earned
42	Rent Revenue
43	Interest Revenue

	EXPENSES
51	Salaries Expense
52	Selling Expense
53	Income Taxes Expense
54	Depreciation Expense-Equipment
55	Insurance Expense
59	Miscellaneous Expense

Chandler Company

ADJUSTED TRIAL BALANCE

December 31, 2018

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	76,000.00
2	Accounts Receivable	29,000.00
3	Prepaid Insurance	16,000.00
4	Equipment	60,000.00
5	Accumulated Depreciation-Equipment		40,000.00
6	Accounts Payable		6,000.00
7	Salaries Payable		8,000.00
8	Income Taxes Payable		4,000.00
9	Roscoe Chandler, Capital		20,000.00
10	Roscoe Chandler, Drawing	5,000.00
11	Fees Earned		175,600.00
12	Rent Revenue		92,000.00
13	Interest Revenue		17,200.00
14	Salaries Expense	71,000.00
15	Selling Expense	25,600.00
16	Income Taxes Expense	15,000.00
17	Depreciation Expense-Equipment	47,200.00
18	Insurance Expense	17,000.00
19	Miscellaneous Expense	1,000.00
20	Totals	362,800.00	362,800.00

Roscoe has attempted to prepare the closing entries for Chandler Company on this panel. Hes not sure if hes entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect.

Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 on the Journal panel.

PAGE 25

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
2	Dec. 31	Roscoe Chandler, Capital		461,600.00
3		Fees Earned			175,600.00
4		Rent Revenue			92,000.00
5		Interest Revenue			17,200.00
6		Salaries Expense			71,000.00
7		Selling Expense			25,600.00
8		Income Taxes Expense			15,000.00
9		Depreciation Expense-Equipment			47,200.00
10		Insurance Expense			17,000.00
11		Miscellaneous Expense			1,000.00
12	31	Roscoe Chandler, Capital		5,000.00
13		Roscoe Chandler, Drawing			5,000.00

Roscoe has attempted to prepare the closing entries for Chandler Company on the Roscoes Journal panel. Hes not sure if hes entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Refer to the Chart of Accounts for exact wording of account titles.

Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 in the following journal.

PAGE 25

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
2
3
4
5
6
7
8
9
10
11
12
13