Question

Journalize the closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Credit Debit 7728 Nov. 30 Service Revenue Sales Revenue 6050 Income Summary 13778 (To close revenue accounts and other accounts with credit balances.) Nov. 30 Income Summary 10279 Sales Discounts 121 Cost of Goods Sold 4400 Rent Expense 412 Salaries and Wages Expense 4015 Supplies Expense 1056 275 Depreciation Expense (To close expense accounts and other accounts with debit balances.) Nov. 30 Income Summary 3499 3499 Retained Earnings (To dose income summary.)

Answer 1

Posting Closing Entries to respective Ledger Accounts:

Retained Earninngs |11/30. 11/30. Bal. $3,499 11/1 Bal. $7,700 $4,201 11/30. Bal. $4,201 Service Revenue 11/30. $7,728 11/22. |11/29. Adj. $7,728 $2,530 $770 $4,428 $7,728 Depreciation Expense $275 11/30. $275 Adj. $275 $275 Supplies Expense $1,056 11/30. |Adj. $1,056 $1,056 $1,056 Salaries and Wages Expense $2,035 11/30. 11/8. $4,015 11/29. $1,430 $550 Adj. $4,015 $4.015

Rent Revenue $412 11/30. $412 11/29. $412 $412 Sales Revenue $6,050 11/12. $6,050 11/30. $6,050 $6,050 Cost of Goods Sold $4,400 11/30. 11/12. $4,400 $4.400 $4,400 Sales Discounts $121 11/30. $121 11/19. $121 $121 Income Summary $7,728 11/30. $6,050 11/30. 11/30. $10,279 11/30. $3,499 $13,778 $13,778

Except Retained Earnings Ledger, all the revenue and expenses accounts will be closed and their respective balances are not transferred to next period because they will be closed in the same period but the balance of Retained Earnings is part of balance sheet and its balance will go on continue in next periods, therefore, its balance will be transferred to next period.