Question

Exercise 3-21A Complete the accounting cycle (LO3-3, 3-4, 3-5, 3-6) (GL)

On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	24,300
Accounts Receivable		5,700
Supplies		3,600
Land		55,000
Accounts Payable					$	3,700
Common Stock						70,000
Retained Earnings						14,900
Totals	$	88,600			$	88,600

During January 2021, the following transactions occur:

January		2		Purchase rental space for one year in advance, $7,500 ($625/month).
January		9		Purchase additional supplies on account, $4,000.
January		13		Provide services to customers on account, $26,000.
January		17		Receive cash in advance from customers for services to be provided in the future, $4,200.
January		20		Pay cash for salaries, $12,000.
January		22		Receive cash on accounts receivable, $24,600.
January		29		Pay cash on accounts payable, $4,500.

The following information is available on January 31.

• Rent for the month of January has expired.
• Supplies remaining at the end of January total $3,300.
• By the end of January, $3,575 of services has been provided to customers who paid in advance on January 17.
• Unpaid salaries at the end of January are $5,450.

• Record the purchase of rental space for one year in advance, $7,500 ($625/month).

• 2

  Record the purchase of additional supplies on account, $4,000.

• 3

  Record the providing of services to customers on account, $26,000.

• 4

  Record the receipt of cash in advance from customers for services to be provided in the future, $4,200.

• 5

  Record the payment of cash for salaries, $12,000.

• 6

  Record the receipt of cash on accounts receivable, $24,600.

• 7

  Record the payment of cash on accounts payable, $4,500.

• 8

  Record the adjusting entry for rent. Rent for the month of January has expired.

• 9

  Record the adjusting entry for supplies. Supplies remaining at the end of January total $3,300.

• 10

  Record the adjusting entry for services provided to customers who paid in advance. By the end of January, $3,575 of services has been provided to customers who paid in advance on January 17.

• 11

  Record the adjusting entry for salaries payable. Unpaid salaries at the end of January are $5,450.

• 12

  Record the entry to close the revenue accounts.

• 13

  Record the entry to close the expense accounts

Here is my journal Entry, I want to know why it says my closing expense is wrong if the trial Balance is Even in unadjusted, adjusted, and post closing.

Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. If no entry is required for a particular transaction/event, select "No journal entry required in the first account field. Account Title Credit No 1 Date Jan 02 Debit 7,500 Prepaid Rent Cash 7.500 2 Jan 09 4,000 Accounts Payable 4,000 Jan 13 26,000 Accounts Receivable Service Revenue 20.000 Jan 17 4,200 Cash Deferred Revenue 4,200 0 00 00 00 00 00 00 00 00 Jan 20 Salaries Expense 12,000 Cash 12,000 Jan 22 24,600 Cash | Accounts Receivable 24,600 Jan 29 4.500 Accounts Payable Cash 4.500 Jan 31 825 Rent Expense Prepaid Rent 625 Jan 31 Supplies Expense Supplies 4,300 Jan 31 3.575 Deferred Revenue Service Revenue 3.575 Jan 31 5,450 Salaries Expense Salaries Payable 5,450 Oo Oooo 0 Jan 31 29,575 Service Revenue Retained Earnings 29,575 13 Jan 31 17.450 % Retained Earnings Salaries Expense 17.450 < Requirement General Ledger >

Answer 1

Credit Debit $ 7,500 Credit $ 7,500 $ 4,000 $ 4,000 $26,000 $26,000 $ 4,200 $ 4,200 Trial Balance Account title Debit Accounts Receivable $ 7,100 Cash $ 29,100 Prepaid Rent $ 6,875 Supplies $ 3,300 Land $ 55,000 Unearned Revenue Common Stock Retained earnings Salaries payable Accounts Payable Service Revenue Rent Expenses $ 625 Salaries Expenses $ 17,450 Supplies Expenses $ 4,300 $ 1,23,750 $ 12,000 $ $ $ $ $ $ 625 70,000 14,900 5,450 3,200 29,575 $12,000 $ 24,600 $24,600 $ 4,500 Date Account title Jan-02 Prepaid Rent Cash Jan-09 Supplies Accounts Payable Jan-13 Accounts Receivable Service Revenue Jan-17 Cash Unearned Revenue Jan-20 Salaries Expenses Cash Jan-22 Cash Accounts Receivable Jan-29 Accounts Payable Cash Adjusting entries a. Rent Expenses Prepaid Rent Supplies Expenses Supplies Unearned Revenue Service Revenue Salaries Expenses Salaries payable Jan-31 Service Revenue Retained Earnings Jan-31 Retained Earnings Rent Expenses Salaries Expenses Supplies Expenses $ 4,500 $ 625 $ 1,23,750 $ 625 $ 4,300 3600+4000-3300 $ 4,300 $ 3,575 $ 3,575 $ 5,450 $ 5.450 $29,575 $29,575 $ 22,375 $ 625 $ 17,450 $ 4,300