Question

After the accountant posted the adjusting entries for B. Lyon, Designer, the worksheet contained the following account balances on my 31;

	A	F	G
5		Adjusted trial	Balance
6	Account name	Debit	Credit
7	Cash	2,018,00
8	Supplies	300.00
9	Accounts receivable	1.408.00
10	Prepaid insurance	978.00
11	Office equipment	5,790.00
12	Accumulated depreciation, office equipment		1,372.00
13	Accounts payable		880.00
14	B, Lyon Capital		7,520.00
15	B, Lyon, Drawing	1,550.00
16	Commissions earned		4,679.00
17	Rent expenses	995.00
18	Supplies expense	575.00
19	Depreciation expense, office equipment	462.00
20	Utilities expense	269.00
21	Miscellaneous expense	97.00
22		14,451.00	14,451.00
23

Required

1. a. write the owners name on the capital and drawing t accounts

b. record the account balances in the T accounts for owners equity. Revenue and expenses

2. journalize the closing entries using the our steps in correct order, number the closing entries 1 through 4

3. post the closing entries to the T accounts immediately after you journalize each one to see the affect of the closing entries, number the closing entries 1 through 4,

Answer 1

B. Lyon, Designer Debit in $ Credit in $ 2398 995 Closing Enteries Date Particulars May-31 Income Summary a/c Dr. To Rent expenses To Supplies expense To Depreciation expense, office equipment To Utilities expense To Miscellaneous expense (Expense accounts closed) Dr. 4679 May-31 Commissions earned a/c To Income Summary (Revenue accounts closed) 4679 Dr. 2281 May-31 Income Summary a/c To B, Lyon Capital (Profits transferred) 2281 Dr. 1550 May-31 B, Lyon Capital a/c To B, Lyon, Drawing (Drawings charged to Capital) 1550

Depreciation expense, office equipmer 462 Income Summary 462 B, Lyon, Drawing Bal B, Lyon Capital 1550 Bal Income Summary 8251 9801 7520 2281 Bal. 462 462 9801 Utilities expense 269 Income Summary Bal 269 B, Lyon, Drawing 1550 B, Lyon Capital Bal 1550 269 269 1550 1550 Miscellaneous expense 97 Income Summary Bal 97 Commissions earned Income Summary 4679 Bal 4679 4679 4679 Bal Rent expenses 995 Income Summary 995 995 995 Supplies expense 575 Income Summary Bal 575 575