Question

Problem 3 The capital, drawing, Income summary, revenue, and expense accounts for Barret Print Shop on December 31, after all adjustments have been made and posted, are presented below. Prepare the journal entries to close the books for Barret (i.e. the closing entries) $12,700 Richard Barret, Capital Richard Barret, Drawing $ 350 Income Summary (after Merchandise Inventory adjustments) 2,650 2.,400 8,200 Sales Sales Returns and Allowances Purchases 260 5,060 405 Purchases Discount Salary Expense 1,200 400 310 130 Rent Expense Depreciation Expense Utilities Expense Page GENERAL JOURNAL Credit Debit Date Description

Answer 1

Journal Entries Account Title and Explanation Debit Credit $ 8,200 Sales Purchase Discount 405 $8,605 Income Summary (To close sales and purchase discount account) $7,360 Income Summa $5,060 $1,200 400 310 130 260 Purchases Salary Expense Rent Expense Depreciation Expense Utilities Expense Sales returns and allowances (To close all expense accounts) Richard Barret, Capital To close income summary account) Richard Barret, Capital (To close Richard, Barret, Drawing account) $ 1,405 (refer note below $ 1,405 Income Summary 350 Richard Barret, Drawing 350

Income Summary closing entry Income Summary (after Merchandise Inventory adjustment) Add: Closure of all expense accounts 2,650 debit $ 7,360debit $8,605 credit $ 10,010 Less: Closure of revenue accounts Excess of debit over credit 1,405 debit