Question

	Trial balance
Account Titles	Debit	Credit
Cash	$          95,430
Accounts Receivable	$            6,000
Prepaid Rent	$          25,000
Prepaid Insurance	$            2,700
Prepaid Supplies	$                120
Equipment	$       400,000
Accumulated Depreciation		$            3,250
Accounts Payable		$                970
Accrued Interest		$            1,400
Accrued Salaries		$                550
Unearned Rental Revenue		$            1,950
Notes Payable		$       350,000
Capital Stock-Mike		$          80,000
Capital Stock-Julie		$          80,000
Dividend	$            4,000
Retained Earnings		$                   -
Rental Revenue		$          46,100
Salaries Expense	$          19,950
Rent Expense	$            5,000
Repair Expense	$                520
Utilities Expense	$                560
Interest Expense	$            1,400
Depreciation Expense	$            3,250
Supplies Expense	$                290
Insurance Expense	$                   -
Total	$       564,220	$       564,220

Income Statement
Revenues
Rental Revenue	$          46,100
Total Revenues		$          46,100
Expenses :
Salaries Expense	$          19,950
Rent Expense	$            5,000
Repair Expense	$                520
Utilities Expense	$                560
Interest Expense	$            1,400
Depreciation Expense	$            3,250
Supplies Expense	$                290
Insurance Expense	$                   -
Total Expenses		$          30,970
Net Income		$          15,130

Statement of Retained Earnings
	Retained Earnings
Beginning Balance	$                   -
Add : Net Income	$          15,130
Less : Dividend	$            4,000
Ending Balance	$          11,130

Balance Sheet
Assets
Current Assets
Cash	$          95,430
Accounts Receivable	$            6,000
Prepaid Rent	$          25,000
Prepaid Insurance	$            2,700
Prepaid Supplies	$                120
Total Current Assets		$       129,250
Long Term assets
Property, Plant and Equipment
Equipment	$       400,000
Less Accumulated Depreciation	$          -3,250	$       396,750
Total Assets		$       526,000
Liabilities
Current Liabilities
Accounts Payable	$                970
Accrued Interest	$            1,400
Accrued Salaries	$                550
Unearned Rental Revenue	$            1,950
Total Current Liabilities		$            4,870
Long term Liabilities
Notes Payable		$       350,000
Total Liabilities		$       354,870
Stockholder's Equity
Capital Stock-Mike	$          80,000
Capital Stock-Julie	$          80,000
Retained Earnings	$          11,130
Total Stockholder's Equity		$       171,130
Total Liabilities & Stockholder's Equity		$       526,000

Instructions:

I think I answered the question and this is what it is asking for I closed out the other T accounts as well. Is this right?

Income Statement

Answer 1

Transaction Account Debit Credit Interest Expense $1400 Rental Revenue $46100 Income Summary $47500

In the above figure, you have taken "interest expense" as income, which is not a income, hence the correct income here would be $46100

Income Statement Particular Debit Particular Credit Jan-31 $30,970 Jan-31 $47500 Jan-31-Cls $15130 $15130

and here also you have mentioned $47500 on the credit side of "income statement" which should have been $46100

Income Summary $30,970 Depreciation Expense $3,250 Salaries Expense $ 19,950 Rent Expense $ 5,000 Repair Expense $ 520 Utilities Expense $ 560 Depreciation Expense $ 3,250

in above picture you have taken "depreciation expense" into consideration for two times, although you have taken only one depreciation into consideration while calculating total expenses.

Below are the pictures of the closing entries and subsequently posted to "T" accounts.

Rental Revenue Balance 46.100 closing 46,1001 Salary expense Balance 19,950 19,950 closing RELAIR EXPENSE RENT EXPENSE 5,000 Balanue 520 Balance Closing 5,000 closing 520 expense Utility expenies 560 intenest Balance 1400 Balance closing 560 Closing 1400 ensing 1400 Depreciation expense 3,250 suppiles expense Balance 290 Balance closing 3,250 Closhing 290

46,100 INCOME SUMMART 19, 950 5,000 520 560 30,970 1400 3,250 290 15,130 15,130 RETAINED EARNING 4,000 15,130 11,130 ] 11,130 DIVIDEND 4,000 Balance I closing 4,000