Question

Print 7. The adjusted trial balance of Stone Sign Company follows: (Click the icon to view the adjusted trial balance.) Requirements 1. Assume Stone Sign Company has a January 31 year-end. Joumalize Stone's closing entries at January 31. 2. How much net income or net loss did Stone Sign Company earn for the year ended January 31? How can you tell? Requirement 1. Assume Stone Sign Company has a January 31 year-end. Journalize Stone's closing entries at January 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) First, close revenues. Date Jan. 31 (1) Accounts and Explanation Debit Credit Next, close the expense accounts. Date Accounts and Explanation Jan. 31 (6) Debit Credit (12) (13) Close the Income Summary account. Accounts and Explanation Debit Credit Date Jan. 31 (14) (15)

Answer 1

Requirement :1
Closing entries
31-Jan-18	Debit	Credit
Closing revenues
Service revenue	17300
Income summary		17300
Closing expenses
Income summary	6400
Salaries expense		3700
Rent expense		1400
Depreciation expense-Equipment		400
Supplies expense		300
Utilities expense		600
Closing the Income summary a/c
Income summary	10900
Retained earnings		10900
(17300-6400)
Closing the dividends a/c
Retained earnings	800
Dividends		800

Requirement :2

The company had net income of $ 10900. We know this because revenues exceeded expenses by this amount and this was the balance in Income Summary a/c when it was closed.