Question

Exercise 4-8 Preparing and posting closing entries CP2 Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accounts have normal balances) to prepare closing journal entries and then post those entries to ledger accounts. General Ledger Acct. No. 301 Acct. No. 622 M. Muncel, Capital Date PR Debit Credit Balance Debit Salaries Expense Date PR May 31 G2 Insurance Expense Date PR 40,000 Acct. No. 302 Credit Balance 22,000 Acct. No. 401 Credit Balance 20,000 Acct. No. 637 Credit Balance Debit May 31 G2 M. Muncel, Withdrawals Date PR Debit May 31 G2 Services Revenue Date PR Debit May 31 | 62 Depreciation Expense Date PR Debit 4,400 May 31 32 Rent Expense Acct. No. 640 Credit Balance Debit Credit Balance 76,000 Acct. No. 603 Balance Date PR May 31 G2 Income Summary 8,400 Acct. No. 901 | Credit Date PR Debit Credit Balance May 31 | 62 15,000 Check M. Muncel Capital (ending balance). $46,200

Answer 1

Date	Accounts	debit	credit
May-31	Service revenue	76000
	Income summary		76000
May-31	Income summary	47800
	Depreciation expense		15000
	Salaries expense		20000
	Insurance expense		4400
	Rent expense		8400
May-31	Income summary	28200
	M.Muncel Capital		28200
May-31	M.Muncel Capital	22000
	M.Muncel Withdrawals		22000

M.Muncel Capital
Date	PR	Debit	credit	Balance
May-31				40000
May-31	Closing		28200	68200
May-31	Closing	22000		46200
M.Muncel Withdrawals
Date	PR	Debit	credit	Balance
May-31				22000
May-31	Closing		22000	0
Service revenue
Date	PR	Debit	credit	Balance
May-31				76000
May-31	Closing	76000		0
Depreciation expense
Date	PR	Debit	credit	Balance
May-31				15000
May-31	Closing		15000	0

Salaries expense
Date	PR	Debit	credit	Balance
May-31				20000
May-31	Closing		20000	0
Insurance expense
Date	PR	Debit	credit	Balance
May-31				4400
May-31	Closing		4400	0
Rent expense
Date	PR	Debit	credit	Balance
May-31				8400
May-31	Closing		8400	0
Income summary
Date	PR	Debit	credit	Balance
May-31	Closing		76000	76000
May-31	Closing	47800		28200
May-31	Closing	28200		0