Question

The following is information from Crystal Companys adjusted trial balance at December 31, 2021: Debit Credit Cash $76,000 No
- BUSA-2205 NE X Chapter 5 Assignment .com / ments 657282 Unearned revenue 8,600 Notes payable 168,880 L. Crystal, capital 23
(61) Prepare closing entries. (Credit account titles are automatically Indented when the amount is entered. Do not indent man
0 0
Add a comment Improve this question Transcribed image text
Answer #1

All accounts can be segregated into two different groups :

1. Permanent accounts - These are balance sheet accounts including assets,liabilities and equity accounts.The balances of these accounts roll over to the next period.Hence,no closing entries are needed to be done.

2. Temporary accounts - These include revenue,expenses, dividends or withdrawals accounts.The balances of these accounts do not roll over to the next period.The closing entries reduces the balances of these accounts to zero.We use income summary account to store the closing entries until we get to close the income summary into retained earnings.

The closing entries for the above mentioned Trial balance would be as under:

Date Account Title and Explanation Debit Credit
12/31/2021 Sales $1,980,000
Interest revenue $11,000
Rent revenue $25,000
Income summary $2,016,000
$2,016,000 $2,016,000
(to close income statement account with credit entries)
Date Account Title and Explanation Debit Credit
12/31/2021 Income summary $1,677,000
Advertising expense $57,000
Cost of goods sold $850,000
Freight out $25,000
Insurance expense $16,000
Interest expense $10,100
Salaries expense $650,000
Sales discounts $9,900
Sales returns and allowances $59,000
$1,677,000 $1,677,000
(to close income statement account with debit entries)

The income summary account is closed by transferring the balance of the account to the Retained earnings account

Date Account Title and Explanation Debit Credit
12/31/2021 Revenue $2,016,000
Expense $1,677,000
Retained earnings $339,000
$2,016,000 $2,016,000
(to close income summary account by transferring the excess of income over expenses to Retained Earnings)
Add a comment
Know the answer?
Add Answer to:
The following is information from Crystal Company's adjusted trial balance at December 31, 2021: Debit Credit...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The following is information from Crystal Company's adjusted trial balance at December 31, 2021: Debit Credit...

    The following is information from Crystal Company's adjusted trial balance at December 31, 2021: Debit Credit Cash Notes receivable $76,000 100,000 Merchandise inventory 69,000 435,400 Equipment Accumulated depreciation-equipment $130,620 Unearned revenue 7,500 Notes payable 143,620 L. Crystal, capital 240,000 L. Crystal, drawings 142,000 Interest revenue 12,000 Rent revenue 25,000 1.970,000 Sales Advertising expense 53,000 Cost of goods sold 860,000 Depreciation expense 43,540 Freight out 27,000 Insurance expense 16,000 10,500 Interest expense Salaries expense 630,000 9,300 Sales discounts Sales returns and...

  • Question 3 View Policies Current Attempt in Progress laborations The following is information from Crystal Company's...

    Question 3 View Policies Current Attempt in Progress laborations The following is information from Crystal Company's adjusted trial balance at December 31, 2021 ey PLUS port Debit Credit Cash $74.000 Notes receivable Merchandise inventory 102,000 71,000 Equipment 464,200 Accumulated depreciation-equipment $139,260 Unearned revenue 7.700 Notes payable 217,960 231,000 L. Crystal, capital L. Crystal, drawings 160,000 Interest revenue 12.000 search 0 e 9 terlagen Tindred.com G FAIRCHI Shok Notes payable L. Crystal, capital 217,960 231,000 L. Crystal, drawings 160,000 Interest revenue...

  • Centre Construction Company Adjusted Trial Balance December 31, 2020 US Dollar Debit Credit $ 59.400 $...

    Centre Construction Company Adjusted Trial Balance December 31, 2020 US Dollar Debit Credit $ 59.400 $ 27,000 $ 405,000 $ 129,600 $ 850,000 $ 180,900 $ 400,000 $ 121,500 $ 25,000 $ 230,000 $ 875,000 $ 43,200 $ 108,000 Accounts Payable Accounts Receivable Accumulated Depreciation - Building Accumulated Depreciation - Equipment Building Cash Common Stock Depreciation Expense Dividends Equipment Fees Earned Interest Expense Insurance Expense Interest Payable Land Miscellaneous Expense Notes Payable Prepaid Insurance Expense Rent Expense Retained Earnings Sales...

  • The following information is from the December 31 un-adjusted trial balance of Excelsior Shop. Credit Debit...

    The following information is from the December 31 un-adjusted trial balance of Excelsior Shop. Credit Debit $ 100,000.00 $ 204,000.00 $ 145,000.00 $ 72,000.00 $ 12,000.00 Cash Accounts Receivable Equipment Accumulated Depreciation - Equipment Supplies Notes Payable Service Revenue Insurance Expense Salaries Expense Interest Expense Advertising Expense $ 100,000.00 $ 450,000.00 $ 24,000.00 $ 125,000.00 $ 2,500.00 $ 9,500.00 a. From the trial balance and the following information, prepare the annual adjusting necessary on December 31. 1.00 The equiment has...

  • WILDHORSE FISHING CENTRE Adjusted Trial Balance March 31, 2021 Credit Debit $7,800 800 1,300 28,000 47,000...

    WILDHORSE FISHING CENTRE Adjusted Trial Balance March 31, 2021 Credit Debit $7,800 800 1,300 28,000 47,000 195,000 $32,000 36,000 Cash Interest receivable Supplies Long-term investments Land Building Accumulated depreciation-building Equipment Accumulated depreciation equipment Accounts payable Interest payable Unearned revenue Notes payable ($6,000 must be paid in February, 2022) R. Falkner, capital R. Falkner, drawings Service revenue Interest revenue Depreciation expense Interest expense Insurance expense Salaries expense Supplies expense Utilities expense 18,500 6,000 1,020 2,120 66,500 169,660 46,000 124,700 1,600 9,850...

  • The Sky Blue Corporation has the following adjusted trial balance at December 31 Credit Debit $...

    The Sky Blue Corporation has the following adjusted trial balance at December 31 Credit Debit $ 1,350 3,200 3,500 4,200 18,000 Cash Accounts Receivable Prepaid Insurance Notes Receivable (long- term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Unearned Revenue Common Stock Retained Earnings Dividends Sales Revenue Rent Revenue Salaries and Wages Expense Depreciation Expense Utilities Expense Insurance Expense Rent Expense Income Tax Expense $ 5,000 6,620 1,600 4,100 840 3,600 1,480 420 52,830 420 24,000...

  • Selected year-end account balances from the adjusted trial balance as of December 31, 2022, for Sarasota...

    Selected year-end account balances from the adjusted trial balance as of December 31, 2022, for Sarasota Corp. is provided below. Credit Debit $69,700 25,250 12,670 204,290 87,460 Accounts Receivable Dividends Depreciation Expense Equipment Salaries and Wages Expense Accounts Payable Accumulated Depreciation-Equipment Unearned Rent Revenue Service Revenue Rent Revenue Rent Expense Retained Earnings Supplies Expense $50,880 110,210 21,980 176,450 5,950 3,460 59,330 1,340 Prepare closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually....

  • Selected year-end account balances from the adjusted trial balance as of December 31, 2022, for Culver...

    Selected year-end account balances from the adjusted trial balance as of December 31, 2022, for Culver Corporation is provided below. Debit Credit Accounts Receivable $79,860 Dividends 28,930 Depreciation Expense 14,520 Equipment 234,080 Salaries and Wages Expense 100,210 Accounts Payable $58,300 Accumulated Depreciation-Equipment 126,280 Unearned Rent Revenue 25,190 Service Revenue 202,180 Rent Revenue 6,820 Rent Expense 3,960 Retained Earnings 67,980 Supplies Expense 1,540 (a) Prepare closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent...

  • Presented below is an adjusted trial balance for Shawn Company, at December 31, 2018. Cash $...

    Presented below is an adjusted trial balance for Shawn Company, at December 31, 2018. Cash $ 7,700 Accounts payable $10,000 Accounts receivable 20,000 Notes payable 9,000 Prepaid insurance 15,000 Accumulated depreciation—Equipment 14,000 Equipment 35,000 Service revenue 29,000 Depreciation expense 7,000 Common stock 10,000 Dividends 1,500 Retained earnings 14,000 Advertising expense 1,400 Unearned service revenue 16,000 Rent expense 800 Salaries and wages expense 12,000 Insurance expense 1,600 $102,000 $102,000 Question 5 Presented below is an adjusted trial balance for Shawn Company,...

  • The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2021 for, Me...

    The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2021 for, Meilleur Merchants. The list of accounts is in alphabetical order. All accounts have normal balances. Meilleur uses a periodic inventory system and the earnings approach to recognize revenue. Account 1 Accounts payable 2 Accounts receivable 3 Accumulated depreciation-building 4 Accumulated depreciation equipment 5 Advertising expense 6 Building 7 S. Meilleur, capital 8 S. Meilleur, drawings 9 Cash 10 Depreciation...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT