Question

Requirements 1. Joumalize the required closing entries for Robins. 2. Determine the ending balance in the capital account. Start by closing the revenue accounts for the period. Do not close expenses; we will do this in the next step. Date Accounts and Explanation Debit Dec. 31 Credit 0 Data Table Close expenses for the period. Date Dec. 31 Accounts and Explanation Debit Credit Cost of Goods Sold Accounts Payable Rent Expense $ 48,000 55,000 670,000 Accumulated Depreciation S 370,000 -Building 18,000 Cash 29,000 Sales Revenue Depreciation Expense- 117.000 Building 230,000 Robins, Withdrawals 255,000 Interest Revenue 32.000 Building Robins, Capital Merchandise Inventory Notes Receivable 8,000 50,000 5,000 Close Income Summary Date Dec. 31 Accounts and Explanation Debit Credit Print Done Close Withdrawals. Date Dec. 31 Accounts and Explanation Debit Credit

Answer 1

1.

Journal

Dec. 31	Sales revenue	670,000
	Interest revenue	5,000
	Income summary		675,000
Dec. 31	Income summary	407,000
	Cost of goods sold		370,000
	Rent expense		29,000
	Depreciation expense - Building		8,000
Dec. 31	Income summary	268,000
	Robins, capital		268,000
Dec. 31	Robins, capital	50,000
	Robins, withdrawals		50,000

Net income = Sales revenue + Interest revenue - Cost of goods sold - Rent expense - Depreciation expense - Building

= 670,000 + 5,000 - 370,000 - 29,000 - 8,000

= $268,000

2.

Robins, capital (Beginning)	230,000
Net income	268,000
	498,000
Robins, withdrawals	- 50,000
Robins, capital (Ending)	$448,000

The capital balance, December 31 = $448,000

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