Question

33) Using the adjusted trial balance below write the four closing entries necessary to prepare accounts for the beginning of the next accounting period. DODSON CONTAINERS Adjusted Trial Balance December 31 $ 3,050 400 830 80 4,200 $ 1,100 98,000 28,000 115,000 880 1,400 2,200 Cash.... Accounts receivable.......... Prepaid insurance Office supplies ........... Office equipment Accumulated depreciation office equipment ... Buildings.. Accumulated depreciation—buildings.......... Land Wages Payable.............. Property taxes payable... Interest payable............. Unearned rent........... Long-term notes payable........... Common stock ........... • Retained earnings ...... Dividends Rent earned ............. Wages expense ............... Utilities expense ............. Property taxes expense Insurance expense............... Office supplies expense.... Depreciation expense office equipment... Depreciation expense-buildings......... Interest expense ...... Totals ........... 460 150,000 30,000 10,340 21,000 67,500 29,000 2,900 2,400 5,800 250 400 3,570 3.000 $291.880 $291.880

Answer 1

Credit Debit $ 67,500 $ 67,500 $ 49,320 Date Account title Dec. 31 Rent earned Income Summary (Close revenue ) Dec. 31 Income Summary Wages Expense Utilities Expense Property taxes expense Insurance Expense Office Supplies Expense Depreciation Expense- Office Equipment Depreciation Expense- Buildings Interest expense (Close expenses ) Dec. 31 Income summery Retained earnings (Close Income Summary) Dec. 31 Retained Earnings Dividends (Close Dividends ) Account Balances after closing entries Rent Earned Insurance Expense Dividends Retained Earnings $ 29,000 $ 2,900 $ 2,400 $ 5,800 $ 250 $ 400 $ 5,570 $ 3,000 $ 18,180 $ 18,180 $ 21,000 $ 21,000 $0 $0 SO $ 7,520 Working Notes: Retained Earnings = $10,340+$18,180-$21,000 = $7,520