Closing Entries (Net Income)

The work sheet for Major Advising for the month ended January 31, 20-- is shown.

Major Advising

Work Sheet (Partial)

For Month Ended January 31, 20--Income StatementBalance SheetACCOUNT TITLEDEBITCREDITDEBITCREDITCash450.00Accounts Receivable950.00Supplies344.00Prepaid Insurance800.00Office Equipment3,500.00Accum. Depr.Office Equipment210.00Accounts Payable990.00Wages Payable310.00Ed Major, Capital4,000.00Ed Major, Drawing850.00Advising Fees3,400.00Wages Expense650.00Advertising Expense100.00Rent Expense600.00Supplies Expense170.00Phone Expense78.00Electricity Expense43.00Insurance Expense97.00Gas and Oil Expense50.00Depr. ExpenseOffice Equipment210.00Miscellaneous Expense18.002,016.003,400.006,894.005,510.00Net Income1,384.001,384.003,400.003,400.006,894.006,894.00

1.Enter the existing balance for each T account. Select Bal. and enter the amount.

3.Post the closing entries to the T accounts. If there is more than one closing entry for an account, enter in the order given in the journal.

Cash101

Accounts Receivable122

Supplies141

Prepaid Insurance145

Office Equipment181

Accum. Depr.Office Equip.181.1

Accounts Payable202

Wages Payable219

Ed Major, Capital311

Ed Major, Drawing312

Income Summary313

Advising Fees401

Wages Expense511

Advertising Expense512

Rent Expense521

Supplies Expense524

Phone Expense525

Electricity Expense533

Insurance Expense535

Gas and Oil Expense538

Depr. Exp.Office Equip.541

Miscellaneous Expense549

2.Prepare closing entries in general journal form. Then post the closing entries to the T accounts.

Page:1DATEDESCRIPTIONPOST.

REF.DEBITCREDIT120--

Jan. 31Advising Fees

12Income Summary

2334Jan. 31Income Summary

45Wages Expense

56Advertising Expense

67Rent Expense

78Supplies Expense

89Phone Expense

910Electricity Expense

1011Insurance Expense

1112Gas and Oil Expense

1213Depreciation Expense-Office Equipment

1314Miscellaneous Expense

14151516Jan. 31Income Summary

1617Ed Major, Capital

17181819Jan. 31Ed Major, Capital

1920Ed Major, Drawing

202121