Question

Sandhill Company had the following adjusted trial balance. $3,840 Sandhill Company Adjusted Trial Balance For the Month Ended June 30, 2020 Adjusted Trial Balance Account Titles Debit Credit Cash Accounts Receivable 4,070 Supplies 400 Accounts Payable $1,700 Unearned Service Revenue 190 Owner's Capital 3,900 Owner's Drawings Service Revenue 5,920 Salaries and Wages Expense 1,300 Miscellaneous Expense 200 Supplies Expense 1,930 Salaries and Wages Payable 540 $12,250 $12,250 510

list of accounts

Answer 1

Closing journal entries are reported to close the temporary accounts of income statement and transferred the balance to owner's capital or retained earnings.
The closing journal entries are shown below
Date	General Journal	Debit	Credit
30-Jun	Service revenue	$5,920
	Income summary		$5,920
	(To close revenue account)
30-Jun	Income summary	$3,430
	Salaries and wages expense		$1,300
	Miscellaneous expense		$200
	Supplies expense		$1,930
	(To close expenses account)
30-Jun	Income summary (5920-3430)	$2,490
	Owner's capital		$2,490
	(To close income summary account)
30-Jun	Owner's, capital	$510
	Owner's drawing		$510
	To close drawing account)
The post closing trial balance for month ended June 30, 2020 is shown below
	Sandhill company
	Adjusted trial balance
	For the month ended June 30, 2020
	Account titles	Debit	Credit
	Cash	$3,840
	Accounts receivable	$4,070
	Supplies	$400
	Accounts payable		$1,700
	Unearned service revenue		$190
	Owner's capital		$5,880	(3900+2490-510)
	Salaries and wages payable		$540
		$8,310	$8,310