Question

The partial work Sheet for Ho Consulting for May Follows;

	A	H	I		J		K
		Income Statement                      Balance Sheet
5
6	Account Name	Debit		Credit		Debit		Credit
7	Cash					5,710.00
8	Supplies					209.00
9	Prepaid insurance					1,123.00
10	Equipment					5,731.00
11	Accumulated, Depreciation, Equipment							1,444,00
12	Accounts payable							1,841.00
13	Go, Ho capital							4,302.00
14	G, Ho, Drawing					2,400.00
15	Consulting Revenue			13,060.00
16	Rent expense	2,200.00
17	Wages expense	1,828.00
18	Supplies expense	422.00
19	Miscellaneous expense	230.00
20
21	Insurance expense	325.00
22	Depreciation expense, equipment	835.00
23	Wages payable
24								366.00
25	Net income	5,840.00		13,060.00		15,173.00		7.953.00
26		7,220.00						7,220.00
27		13,060.00		13,060.00		15,173.00		15,173.00

Required

1. a. writes the owners name on the capital and drawing t accounts

b. record the account balances in the T accounts for owners’ equity. Revenue and expenses

2. journalize the closing entries using four steps in correct order, number the closing entries 1 through 4

3. post the closing entries to the T accounts immediately after you journalize each one to see the affect of the closing entries, number the closing entries 1 through 4,

Answer 1

T Accounts preparation G. Ho Capital Account Cash Cr 4302 Cr G. Ho Drawings Cash 2400 Dr Cash Consulting Revenue 13060 Cr Rent Expenses Accounts Payable Cash 1841 359 Supplies Expenses Cash 422 Dr Wages Expenses Cash Wages Payable 1462 366 Dr Misc. Expenses Cash Cr 230 Cr Insurance Expenses Cash 325 Dr Cr Depreciation expense, equipment Accumulated, 835 Depreciation, Equipment Closing Journal entries Credit 5840 GL Accounts Debit Income statement Rent 2200 Wages 1828 Supplies 422 Misc. Expenses 230 Insurance 325 Depreciation (Being closing entry for expenses) 835 Credit GL Accounts Income statement Consulting Revenue Debit 13060 13060 Credit GL Accounts G. Ho Capital G. Ho Drawing Debit 2400 2400 Posting of closing entries in T accounts G. Ho Capital Account 4302 G. Ho Drawings Cash 2400 Cr G. Ho Capital G. Ho Drawings 2400 Cash 2400 Consulting Revenue 13060 Income Statement 13060 Cash Dr Cr Income Statement Rent Expenses 2200 Accounts Payable Cash 1841 359 Cr Supplies Expenses Income Statement 422 Cash 422 Cr Dr Income Statement Wages Expenses 1828 Cash Wages Payable 1462 Dr Misc. Expenses 230 Cash Income Statement 230 Dr Cr Insurance Expenses 325 Cash Income Statement 325 Cr Dr Income Statement Depreciation expense, equipment 835 Accumulated, 835 Depreciation, Equipment