Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 Statement | Balance Sheet | |||
ACCOUNT TITLE | DEBIT | CREDIT | DEBIT | CREDIT |
Cash | 450.00 | |||
Accounts Receivable | 950.00 | |||
Supplies | 344.00 | |||
Prepaid Insurance | 800.00 | |||
Office Equipment | 3,500.00 | |||
Accum. Depr.Office Equipment | 210.00 | |||
Accounts Payable | 990.00 | |||
Wages Payable | 310.00 | |||
Ed Major, Capital | 4,000.00 | |||
Ed Major, Drawing | 850.00 | |||
Advising Fees | 3,400.00 | |||
Wages Expense | 650.00 | |||
Advertising Expense | 100.00 | |||
Rent Expense | 600.00 | |||
Supplies Expense | 170.00 | |||
Phone Expense | 78.00 | |||
Electricity Expense | 43.00 | |||
Insurance Expense | 97.00 | |||
Gas and Oil Expense | 50.00 | |||
Depr. ExpenseOffice Equipment | 210.00 | |||
Miscellaneous Expense | 18.00 | |||
2,016.00 | 3,400.00 | 6,894.00 | 5,510.00 | |
Net Income | 1,384.00 | 1,384.00 | ||
3,400.00 | 3,400.00 | 6,894.00 | 6,894.00 |
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.
Cash | 101 | ||
---|---|---|---|
Accounts Receivable | 122 | ||
---|---|---|---|
Supplies | 141 | ||
---|---|---|---|
Prepaid Insurance | 145 | ||
---|---|---|---|
Office Equipment | 181 | ||
---|---|---|---|
Accum. Depr.Office Equip. | 181.1 | ||
---|---|---|---|
Accounts Payable | 202 | ||
---|---|---|---|
Wages Payable | 219 | ||
---|---|---|---|
Ed Major, Capital | 311 | ||
---|---|---|---|
Ed Major, Drawing | 312 | ||
---|---|---|---|
Income Summary | 313 | ||
---|---|---|---|
Advising Fees | 401 | ||
---|---|---|---|
Wages Expense | 511 | ||
---|---|---|---|
Advertising Expense | 512 | ||
---|---|---|---|
Rent Expense | 521 | ||
---|---|---|---|
Supplies Expense | 524 | ||
---|---|---|---|
Phone Expense | 525 | ||
---|---|---|---|
Electricity Expense | 533 | ||
---|---|---|---|
Insurance Expense | 535 | ||
---|---|---|---|
Gas and Oil Expense | 538 | ||
---|---|---|---|
Depr. Exp.Office Equip. | 541 | ||
---|---|---|---|
Miscellaneous Expense | 549 | ||
---|---|---|---|
2. Prepare closing entries in general journal form. Then post the closing entries to the T accounts.
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |||
---|---|---|---|---|---|---|---|
1 | 20-- Jan. 31 | Advising Fees | 1 | ||||
2 | Income Summary | 2 | |||||
3 | 3 | ||||||
4 | Jan. 31 | Income Summary | 4 | ||||
5 | Wages Expense | 5 | |||||
6 | Advertising Expense | 6 | |||||
7 | Rent Expense | 7 | |||||
8 | Supplies Expense | 8 | |||||
9 | Phone Expense | 9 | |||||
10 | Electricity Expense | 10 | |||||
11 | Insurance Expense | 11 | |||||
12 | Gas and Oil Expense | 12 | |||||
13 | Depreciation Expense-Office Equipment | 13 | |||||
14 | Miscellaneous Expense | 14 | |||||
15 | 15 | ||||||
16 | Jan. 31 | Income Summary | 16 | ||||
17 | Ed Major, Capital | 17 | |||||
18 | 18 | ||||||
19 | Jan. 31 | Ed Major, Capital | 19 | ||||
20 | Ed Major, Drawing | 20 | |||||
21 | 21 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started