Question

RYAN COMPANY Trial Balance August 31, 2017 After Adjustment Cr. Dr. Cr. Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue Common Stock Retained Earnings Dividends Service Revenue Rent Revenue Salaries and Wages Expense Supplies Expense Rent Expense Insurance Expense Depreciation Expense Before Adjustment Dr. $10,900 8,800 2,500 4,000 16,000 $ 3,600 5,800 0 1,800 10,000 5,500 2,800 34,000 12,100 17,000 0 10,800 $10,900 9,400 500 2,500 16,000 $ 4,800 5,800 1,100 800 10,000 5,500 2,800 34,600 13,100 18,100 2,000 10,800 1,500 1,200 $75,700 $75,700 $72,800 $72,800

Instructions: Prepare the closing entries for the temporary accounts at August 31.

Answer 1

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Ryan Company
Closing entries
All expense and income accounts will be closed to income summary account.
Then income summary account will be closed to Retained Earnings account.
Journal Entry
Account	Debit $	Credit $
Service Revenue	34,600.00
Rent Revenue	13,100.00
Income summary		47,700.00
					Posting closing entries
Income summary	33,600.00				Income summary
Salaries & Wages Expense		18,100.00			Date	Account	Debit $	Date	Account	Credit $
Supplies Expense		2,000.00			Aug 31 2017	Salaries & Wages Expense	18,100.00	Aug 31 2017	Service Revenue	34,600.00
Rent Expense		10,800.00			Aug 31 2017	Supplies Expense	2,000.00	Aug 31 2017	Rent Revenue	13,100.00
Insurance Expense		1,500.00			Aug 31 2017	Rent Expense	10,800.00
Depreciation Expense		1,200.00			Aug 31 2017	Insurance Expense	1,500.00
					Aug 31 2017	Depreciation Expense	1,200.00
Income summary	14,100.00		*This is the balancing figure		Aug 31 2017	Retained Earnings*	14,100.00
Retained Earnings		14,100.00				*This is the balancing figure	47,700.00			47,700.00
Retained Earnings	2,800.00
Dividends		2,800.00