Question

Required information

[The following information applies to the questions displayed below.]

On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	23,900
Accounts Receivable		13,600
Allowance for Uncollectible Accounts					$	1,400
Supplies		2,500
Notes Receivable (6%, due in 2 years)		20,000
Land		77,000
Accounts Payable						7,200
Common Stock						96,000
Retained Earnings						32,400
Totals	$	137,000			$	137,000

During January 2021, the following transactions occur:

January		2		Provide services to customers for cash, $35,100.
January		6		Provide services to customers on account, $72,400.
January		15		Write off accounts receivable as uncollectible, $1,000.
January		20		Pay cash for salaries, $31,400.
January		22		Receive cash on accounts receivable, $70,000.
January		25		Pay cash on accounts payable, $5,500.
January		30		Pay cash for utilities during January, $13,700.

6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Record the closing entry for revenue.

Note: Enter debits before credits.

	Date General Journal Debit Credit January 31, 2021

Record the closing entry for expenses.

Note: Enter debits before credits.

	Date General Journal Debit Credit January 31, 2021

Answer 1

Journal Entry- Closing Entrie
Date	Accoutn Tittle	Debit	Credit
31-01-21	Servcie Revenue	$107,500.00
	Income Summary		$107,500.00
	TO Record Closing of Service Revenue
31-01-2021	Income Summary	$46,100.00
	Bad Debt Expense		$1,000.00
	Salary Expense		$31,400.00
	Utilities Expense		$13,700.00
	TO Record Closing of Expense