Question

Question Help The September 30, 2018 adjusted trial balance of Caramel Craze, Inc., is shown below. Click the icon to view the adjusted trial balance.) Read the requirements Requirement 1. Prepare the September closing entries for Caramel Craze, Inc. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by closing out the revenue accounts. Journal Entry Date Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question. NO • Previous

Answer 1

Solution:
	Closing entry for revenue
Journal Entries
Date	Account Title and explanation	Debit	Credit
Sept.30 2018	Service Revenue	$                    49,000
	Interest Revenue	$                          500
	Income Summary		$                      49,500
	(To close the revenue account)
	Closing entry for Expenses
Sept.30 2018	Income Summary	$                    31,600
	Salaries Expenses		$                      24,000
	Rent Expenses		$                        5,300
	Depreciation Expenses - Equipment		$                        1,400
	Utilities Expenses		$                            700
	Supplies Expenses		$                            200
	(To Close Expenses accounts)
	Closing entries for Income summary
Sept.30 2018	Income Summary	$                    17,900
	Retained Earnings		$                      17,900
	(To Close the income Summary and transferred to retained Earnings)
	Closing entries for Dividend
Sept.30 2018	Retained Earnings	$                       1,000
	Dividends		$                        1,000
	(To Close the Dividend Account)