Question

Exercise 194 At March 31, account balances after adjustments for Wide Screen are as follows: Accounts Cash Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Owner's, Capital Owner's, Drawings Ticket Revenue Service Revenue Advertising Expense Supplies Expense Depreciation Expense Rent Expense Salaries and Wages Expense Account Balances (After Adjustment) $11,000 4,000 50,000 12,000 5,000 20,000 8,000 59,000 55,000 18,800 17,000 4,000 26,000 24,000 5,200 Utilities Expense Prepare the closing journal entries for Wide Screen. (Credit account titles are automatically indented when amount is entered. Do not indent manu

Answer 1

Solution:

Closing Journal Entries for Wide Screen:

No.	Account title and explanation	Debit	Credit
Mar. 31	Ticket Revenue	$          59,000
	Service Revenue	$          55,000
	Income Summary		$      114,000
	(To close revenue account )
Mar. 31	Income Summary	$          95,000
	Advertising Expense		$         18,800
	Supplies Expense		$         17,000
	Depreciation Expense		$           4,000
	Rent Expense		$         26,000
	Salaries ans Wages Expense		$         24,000
	Utilities Expense		$           5,200
	(To close Expense account )
Mar. 31	Income Summary ( $114,000 - $95,000)	$          19,000
	Owner`s Capital		$         19,000
	(To transfer net income to capital )
Mar. 31	Owner`s Capital	$            8,000
	Owner`s Drawings		$           8,000
	(To close drawings to capital)