Closing Entries

After the accounts have been adjusted at April 30, the end of thefiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co.:

The following data were extracted from the accounting records of Sacajawea Mercantile Co. for the year ended June 30, 20Y4: June 30, 20Y4 Balances Debit Credit Sales $10,000,000 Accounts Receivable $850,000 Allowance for Sales Discounts 400 Estimated sales discounts that will be taken in $7,000 scal year ending June 30, 20Y5: a. Journalize the June 30, 20Y4, adjusting entry for estimated sales discounts. If an amount box does not require an entry, leave it blank. uneao _ v El Allowance for Sales Discounts ./ E] ,I 4 Feedback V Check My Work a. Recall that estimated sales discounts reduce sales and are recorded in a oontra revenue account. b. How would sales and accounts receivable be reported on the nancial statements for the year ending June 30, 20Y4? Sales would be reported as $:] on the income statement J Accounts receivable would be reported as $:] on the balance sheet J After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co. : Oscar Killingsworth, Capital $526,550 Oscar Killingsworth, Drawing 27,000 Fees Earned 457,955 Wages Expense 358,200 Rent Expense 86,000 Supplies Expense 32,240 Miscellaneous Expense 10,745 Journalize the two entries required to close the accounts. If an amount box does not require an entry, leave it blank. Apr. 30 Oscar Killingsworth, Capital v Fees Earned v 457,955 0 V Wages Expense v 358,200 Rent Expense v 86,000 Supplies Expense v 32,240 Miscellaneous Expense v 10,745 Apr. 30 Oscar Killingsworth, Capital 27,000 Oscar Killingsworth, Drawing 27,000