Question

Question Help The September 30, 2018 adjusted trial balance of De Leche, Inc., is shown below. (Click the icon to view the adjusted trial balance.) Read the requirements Requirement 1. Prepare the September closing entries for De Leche, Inc. (Record dabits first, then credits. Exclude explanations from any joumal entries.) Begin by closing out the revenue accounts Journal Entry Date Accounts Debit T Credit Choose from any list or enter any number in the input fields and then continue to the next question

Answer 1

Solution :

Requirement 1.

Closure of revenue accounts :

Date	Accounts	Debit	Credit
Sept. 30	Service revenue	$ 41,000
	Interest revenue	$ 1,100
	Income summary		$42,100

Closure of expense accounts :

Date	Accounts	Debit	Credit
Sept.	Income summary	$25,650
	Dividends
	Salaries expense		$17,300
	Rent expense		$5,800
	Depreciation exp.-Equip.		$1,400
	Utilities expense		$600
	Supplies exp.		$550

Closure of dividends account :

Requirements: 2

Beg. bal. in Retained Earnings	+	Net Income	-	Dividends	=	Ending Bal. in Retained Earnings
$17,800	+	$16,450	-	$8,000	=	$26,250

Requirement : 3

De Leche, Inc Post closing trial balance Sept. 30, 2018
Accounts	Debit	Credit
Cash	$5,300
Accounts Receivable	$7,000
Prepaid Rent	$4,000
Supplies	$200
Equipment	$34,000
Accumulated Dep.-Equipment		$3,900
Accounts payable		$2,800
Unearned service revenue		$1,500
Salaries payable		$1,600
Notes payable		$7,000
Retained Earnings		$26,250
Common stock		$7,450
Total	$50,500	$50,500

Note: If u have any query, ask me in the comment section. Provide vote ups(ratings) please!!!