Question

Poskie Ltd's adjusted trial balance includes the following accounts, all with normal balances: Service Revenue, $52,000; Salaries Expense, $25,000; Depreciation Expense, $14,000; Other Operating Expenses, $18,000; Accumulated Depreciation, $30,000: Other Comprehensive Income--Gain on Foreign Currency Translation, $10,000; Retained Earnings $180,000; and Revaluation Reserve $23,000. Required: Prepare the journal entry to close Income Summary. You do not have to prepare the journal entries to close the individual income and expense accounts. Copy and paste this table as a template to use to prepare your journal entry. You may add additional lines if necessary. Workings can be done outside of the template. Account Name Debit Credit Edit Insert Format Tools Table 12pt Paragraph | BIVA & Tv Account Name Debit Credit р O 4 words

Answer 1

Answer:

Income Statement
	(In $)	(In $)
Account Name	Debit	Credit
Service Revenue		52000
Salary Expense	25000
Depreciation Expenses	14000
Other Operating Expenses	18000
Accumulated Depreciation	30000
Gain on Foreign Currency Translation		10000
Retained Earning		180000
Revaluation Reserve	23000

Journal Entries:

	Journal Entries
		(In $)	(In $)
	Account Name	Debit	Credit
a)	Service Revenue A/c Debit	52000
	To Trading A/c		52000
b)	Trading A/c Debit	25000
	To Salary Expenses		25000
c)	Trading Profit & Loss A/c Debit	14000
	To Depreciation Expenses		14000
d)	Trading Profit & Loss A/c Debit	18000
	To Other operating Expenses		18000
e)	Shown on Asset side of Balance sheet
f)	Profit & Loss A/c Debit	10000
	To Gain on Foreign Currency Translation		10000
g)	Shown on the liability side of balance sheet
h)	Shown on the liability side of balance sheet