Question
T-accounts have been opened using the balances from the adjusted trial balance. Post the closing entries to the t-accounts and calculate ending balances for each
T-accounts have been opened using the balances from the adjusted trial balance. Post the closing entries to the t-accounts and calculate ending balances for each account. For accounts that have a zero balance, enter the zero on the normal balance side. Use the acronym for closing entries as post references and include Bal. references where appropriate. For the Income Summary account, calculate and enter the Balance (Bal.) before posting the entry to close out the account.
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| Dec. 31 | Service Revenue | 50,000 | |
| Income Summary | 50,000 | ||
| To close Revenue |
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| Dec. 31 | Income Summary | 23,000 | |
| Retained Earnings | 23,000 | ||
| To close Income Summary |
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| Dec. 31 | Retained Earnings | 15,000 | |
| Dividends | 15,000 | ||
| To close Dividends |
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| Dec. 31 | Income Summary | 27,000 | |
| Depreciation Expense--Furniture | 4,000 | ||
| Interest Expense | 6,000 | ||
| Rent Expense | 2,000 | ||
| Salaries Expense | 5,000 | ||
| Supplies Expense | 10,000 | ||
| To close Expenses |
| Depreciation Expense--Furniture | |||
| Adj. Bal. | 4,000 | Bal.DEIR | |
| Bal.DEIR | Bal.DEIR |
| Rent Expense | |||
| Adj. Bal. | 2,000 | Bal.DEIR | |
| Bal.DEIR | Bal.DEIR |
| Dividends | |||
| Adj. Bal. | 15,000 | Bal.DEIR | |
| Bal.DEIR | Bal.DEIR |
| Service Revenue | |||
| Bal.DEIR | 50,000 | Adj. Bal. | |
| Bal.DEIR | Bal.DEIR |
| Interest Expense | |||
| Adj. Bal. | 6,000 | Bal.DEIR | |
| Bal.DEIR | Bal.DEIR |
| Salaries Expense | |||
| Adj. Bal. | 5,000 | Bal.DEIR | |
| Bal.DEIR | Bal.DEIR |
| Retained Earnings | |||
| Bal.DEIR | 42,000 | Adj. Bal. | |
| Bal.DEIR | Bal.DEIR | ||
| Bal.DEIR | Bal.DEIR |
| Income Summary | |||
| Bal.DEIR | Bal.DEIR | ||
| Bal.DEIR | Bal.DEIR | ||
| Bal.DEIR | Bal.DEIR | ||
| Bal.DEIR | Bal.DEIR |
| Supplies Expense | |||
| Adj. Bal. | 10,000 | Bal.DEIR | |
| Bal.DEIR | Bal.DEIR |
A T is drawn. The vertical line divides the account into its left and right sides. The left side of the T-account is called the debit side and the right side is called the credit side. The account name is at the top, above the horizontal line.
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Financial ACCT2
Authors: Norman H. Godwin, C. Wayne Alderman
2nd edition
9781285632544, 1111530769, 1285632540, 978-1111530761
