Question

As of December 31, the end of the current year, the ledger of Harris Company contained the following account balances after adjustment. All accounts have normal balances?

Cash	$8,440		C. Harris, Drawing	$1,498
Equipment	11,586		Professional Fees	7,075
Accumulated Depreciation, Equipment	2,587		Wages Expense	1,268
Accounts Payable	1,674		Rent Expense	1,090
Wages Payable	658		Depreciation Expense, Equipment	1,143
C. Harris, Capital	13,376		Miscellaneous Expense	345

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The Income Statement columns of the work sheet of Redfax Company for the fiscal year ended December 31 follow. During the year, D. Redfax withdrew $12,000.

	INCOME STATEMENT
ACCOUNT NAME	DEBIT	CREDIT
Income from Services		32,750
Rental Revenue		18,000
Wages Expense	36,725
Utilities Expense	8,650
Miscellaneous Expense	2,415
	47,790	50,750
Net Income	2,960
	50,750	50,750

Required;

Journalize the closing entries. If an amount box does not require an entry, leave it blank.

GENERAL JOURNAL						PAGE
DATE	DESCRIPTION	DOC. NO.		POST. REF.	DEBIT	CREDIT
20--	Closing Entries
Dec. 31	Income from Services
	Rental Revenue
	Income Summary
Dec. 31	Income Summary
	Wages Expense
	Utilities Expense
	Miscellaneous Expense
Dec. 31	Income Summary
	D. Redfax, Capital
Dec. 31	D. Redfax, Capital
	D. Redfax, Drawing

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The account balances of Bryan Company as of June 30, the end of the current fiscal year, are as follows:

	TRIAL BALANCE
ACCOUNT NAME	DEBIT	CREDIT
Cash	5,491.00
Accounts Receivable	624.00
Supplies	397.00
Prepaid Insurance	1,280.00
Equipment	6,497.00
Accumulated Depreciation, Equipment		2,672.00
Van	10,989.00
Accumulated Depreciation, Van		4,368.00
Accounts Payable		1,036.00
B. Bryan, Capital		18,583.00
B. Bryan, Drawing	18,000.00
Fees Earned		38,417.00
Salaries Expense	18,600.00
Advertising Expense	1,887.00
Van Operating Expense	462.00
Utilities Expense	685.00
Miscellaneous Expense	164.00
	65,076.00	65,076.00

Required:

1. Data for the adjustments are as follows:

1. Expired or used up insurance, $495.
2. Depreciation expense on equipment, $670.
3. Depreciation expense on the van, $1,190.
4. Salary accrued (earned) since the last payday, $540 (owed and to be paid on the next payday).
5. Supplies used during the period, $97.

Complete the worksheet. If no amount is required, leave the entry box blank.

Bryan Company
Work Sheet
For Year Ended June 30, 20—
		TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
	ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
1	Cash											1
2	Accounts Receivable											2
3	Supplies											3
4	Prepaid Insurance											4
5	Equipment											5
6	Accum. Depr., Equipment											6
7	Van											7
8	Accumulated Depreciation, Van											8
9	Accounts Payable											9
10	B. Bryan, Capital											10
11	B. Bryan, Drawing											11
12	Fees Earned											12
13	Salaries Expense											13
14	Advertising Expense											14
15	Van Operating Expense											15
16	Utilities Expense											16
17	Miscellaneous Expense											17
18												18
19	Insurance Expense											19
20	Depr. Exp., Equipment											20
21	Depreciation Expense, Van											21
22	Salaries Payable											22
23	Supplies Expense											23
24												24
25	Net Income											25
26

Answer 1

Answer

• Requirement 1 Closing Entries

GENERAL JOURNAL						PAGE
DATE	DESCRIPTION	DOC. NO.		POST. REF.	DEBIT	CREDIT
20--	Closing Entries
Dec. 31	Income from Services				$32,750
	Rental Revenue				$18,000
	Income Summary					$50,750
Dec. 31	Income Summary				$47,790
	Wages Expense					$36,725
	Utilities Expense					$8,650
	Miscellaneous Expense					$2,415
Dec. 31	Income Summary				$2,960
	D. Redfax, Capital					$2,960
Dec. 31	D. Redfax, Capital				$12,000
	D. Redfax, Drawing					$12,000

• Requirement 2: Work Sheet

For Year Ended June 30, 20—
		TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
	ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
1	Cash	$5,491				$5,491				$5,491		1
2	Accounts Receivable	$624				$624				$624		2
3	Supplies	$397			$97	$300				$300		3
4	Prepaid Insurance	$1,280			$495	$785				$785		4
5	Equipment	$6,497				$6,497				$6,497		5
6	Accum. Depr., Equipment		$2,672		$670		$3,342				$3,342	6
7	Van	$10,989				$10,989				$10,989		7
8	Accumulated Depreciation, Van		$4,368		$1,190		$5,558				$5,558	8
9	Accounts Payable		$1,036				$1,036				$1,036	9
10	B. Bryan, Capital		$18,583				$18,583				$18,583	10
11	B. Bryan, Drawing	$18,000				$18,000				$18,000		11
12	Fees Earned		$38,417				$38,417		$38,417			12
13	Salaries Expense	$18,600		$540		$19,140		$19,140				13
14	Advertising Expense	$1,887				$1,887		$1,887				14
15	Van Operating Expense	$462				$462		$462				15
16	Utilities Expense	$685				$685		$685				16
17	Miscellaneous Expense	$164				$164		$164				17
18	TOTAL	$65,076	$65,076									18
19	Insurance Expense			$495		$495		$495				19
20	Depr. Exp., Equipment			$670		$670		$670				20
21	Depreciation Expense, Van			$1,190		$1,190		$1,190				21
22	Salaries Payable				$540		$540				$540	22
23	Supplies Expense			$97		$97		$97			$0	23
24	TOTAL	$65,076	$65,076	$2,992	$2,992	$67,476	$67,476	$24,790	$38,417	$42,686	$29,059	24
25	Net Income					$0		$13,627			$13,627	25
26	TOTAL					$67,476	$67,476	$38,417	$38,417	$42,686	$42,686