Question

At March 31, account balances after adjustments for Wide Screen are as follows: Accounts Cash Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Owner's, Capital Owner's, Drawings Ticket Revenue Service Revenue Advertising Expense Supplies Expense Depreciation Expense Rent Expense Salaries and Wages Expense Utilities Expense Account Balances (After Adjustment) $11,000 4,000 50,000 12,000 5,000 20,000 8,000 59,000 55,000 18,800 17,000 4,000 26,000 24,000 5,200 Prepare the closing journal entries for Wide Screen. (Credit account titles are automatically indented when amount entered. Do not indent manually.) reement | Privacy Policy. I 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons Inc

Answer 1

Answer:

Wide Screen
Closing entries
All expense and income accounts will be closed to income summary account.
Then income summary and Drawings account will be closed to Capital account.
Journal Entry
Account	Debit $	Credit $
Ticket Revenue	59,000.00
Service Revenue	55,000.00
Income summary		114,000.00
(To close revenue account)
Income summary	95,000.00
Advertising Expense		18,800.00
Supplies Expense		17,000.00
Depreciation Expense		4,000.00
Rent Expense		26,000.00
Salaries & Wages Expense		24,000.00
Utilities Expense		5,200.00
(To close expense account)
Income summary	19,000.00		This is 114000- 95000.
Owner's Capital		19,000.00	This is 114000- 95000.
(To transfer net income to capital )
Owner's Capital	8,000.00
Owner's Drawings		8,000.00
(To close drawings to capital)