Question

Exercise 4-07 a-b (Video)

Pronghorn Company had the following adjusted trial balance.

Pronghorn Company Adjusted Trial Balance June 30, 2020
		Adjusted Trial Balance
Account Titles		Debit		Credit
Cash		$3,790
Accounts Receivable		3,800
Supplies		530
Accounts Payable				$1,900
Unearned Service Revenue				170
Common Stock				4,100
Retained Earnings				760
Dividends		410
Service Revenue				4,750
Salaries and Wages Expense		1,200
Miscellaneous Expense		240
Supplies Expense		2,150
Salaries and Wages Payable				440
		$12,120		$12,120

Prepare closing entries at June 30, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 30
	(To close revenue account)
June 30
	(To close expense accounts)
June 30
	(To close net income / (loss))
June 30
	(To close dividends)

Answer 1

Answer Closing Journal Entries in the books of Pronghorn Co. Date Particulars Debit ($) Credit ($) 2020 Dr. 4,750 4,750 Dr. 3,590 1,200 240 2,150 Jun-30 Service revenue To Income Summary (To close revenue) Jun-30 Income Summary To Salaries and wages expense To Miscellaneous expense To Supplies expense (To close expenses) Jun-30 Income Summary To Retained earnings (To close net income) Jun-30 Retained earnings To Dividends (To close dividend) Dr. 1,160 1,160 Dr. 410 410

Computation of Net Income Particular Service Revenue Salaries and wages expense Miscellaneous expense Supplies expense Net Income Amount ($) 4,750 -1,200 -240 -2,150 1,160