Question

These Income Statement columns from a 10-column work sheet are for Brown's Bike Rental Company Debit Credit 144,000 42 joints Account Title Rent earned Salaries expense Insurance expense office supplies expense Bike repair expense Depreciation expense-Bikes 63,936 9,072 21,168 4,464 27,584 (1) Determine the amount that should be entered on the net income line of the work sheet. (2) Prepare the company's closing entries. The owner, H. Brown, did not make any withdrawals this period. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the company's closing entries. The owner, H. Brown, did not make any withdrawals this period. NO General Journal Credit Transaction 1 Debit 144,000 Rent earned Income summary 126,1441 Income summary H. Brown, Capital 17.856 17,856 < Required 1

Answer 1

Net income = revenue – expense = 144,000 – 126144 = $ 17,856

Date	Particulars	Debit ($)	Credit($)
31-Dec	Rent earned	$            144,000
	Income summary		$            144,000
31-Dec	Income summary	$            126,144
	Depreciation expense- bikes		$              27,504
	Salaries expense		$             63,936
	Insurance expense		$         9072
	Bike repair expense		$        4464
	Office Supplies expense		$      21,168
31-Dec	Income summary (144,000 – 126,144)	$            17,856
	H. Brown Capital		$            17,856