Question

Dorsey Company's partial worksheet for the month ended March 31, 2019, is shown below. Open the owner's capital account (account number 301) in the general ledger and record the March 1, 2019, balance of $39,500 shown on the worksheet.

Income Statement Balance Sheet

Account Name Debit Credit Debit Credit

Cash 10,000

Account Receivable 14,000

Supplies 5,250

Equipment 37,500   

Accum. Depr. -Equip 13,000

Accounts Payable 11,000

N. Dorsey, Capital 39,500

N, Dorsey, Drawing 4,500

Fees Income 29,000

Salaries Expense 14, 900

Rent expense 2,150

Supplies Expense 1,450

Depr. Exp. -Equip. 2,750

Totals 21,250 29,000 71,250 71,250 63,500

Net Income 7,750 7,750

prepare a journal entries for the Dorsey Company's on March 31, 2019. Post the closing entries to the owner's capital account.

Prepare a postclosing trial balance.   

Answer 1

Solutions:

Dorsey Company
Closing Entries
No.	Account title and explanation	Debit	Credit
1	Fees Income Dr	$29,000
	To Income Summary		$29,000
r	(To transfer fees income)
2	Income Summary Dr	$21,250
	To Salaries Expense		$14,900
	To Rent expense		$2,150
	To supplies Expense		$1,450
	To Depr. Expense - Equip.		$2,750
	(To transfer expenses)
3	Income Summary Dr [$29000 - $21250]	$7,750
	To N. Dorsey, Capital		$7,750
	(To Transfer income summary balance)
4	N. Dorsey, Capital Dr	$4,500
	To N. Dorsey, Drawings		$4,500
	(To transfer drawings)

General Ledger
N. Dorsey Capital		Account no. 301
Account Title	Debit	Credit	Balance
Mar 01, 2019			$39,500
Mar 31, 2019		$7,750	$47,250
Mar 31, 2019	$4,500		$42,750

Post Closing Trial Balance
Account Title	Debit	Credit
Cash	$10,000
Accounts Receivable	$14,000
Supplies	$5,250
Equipment	$37,500
Accumulated DepreciationEquipment		$13,000
Accounts Payable		$11,000
N. Dorsey, Capital		$42,750
Total	$66,750	$66,750