Question

In this stage of the accounting cycle, you are asked to record closing entries in the general journal and then post them to the general ledger accounts. This step must be completed to prepare the accounts for the next accounting period. Instructions for closing entries 1) Record closing entries in the general journal. 2) Post the closing entries from the general journal to the relevant general ledger accounts 3) Record the final closing balance of each ledger account in the Post-Closing Balance row of each ledger, even for ledgers with a balance of zero. Although each ledger already has a running balance, the Post- Closing Balance row must still be filled out in order receive full points. Back-On-Track functionality Please note that any answers from previous pages carried through onto this page (either on the page or in a popup information page) have been reset, if necessary, to the correct answers. Your particular answers from previous pages are no longer shown. Remember: • Enter all answers to the nearest whole dollar. • You are also required to apply the journal and ledger instructions the practice set. provided in previous stages of Before pressing the Submit answers button, we recommend that you click the Show All tab and check that all relevant accounting records have been completed.

Answer 1

Closing entries:

Date	Account title and explanation	Debit	Credit
June 30	Income summary	$23,246
	Wages expense		$15,740
	Telephone expense		$260
	Advertising expense		$4,400
	Office supplies expense		$1,464
	Depn Expense: Computer equipment		$392
	(Closing entry to debit the Income summary account)		$990
June 30	Revenues	$28,600
	Income summary		$28,600
	(Closing entry to credit the Income Summary account)
June 30	Income summary [28,600-23,246]	$5,354
	Capital		$5,354
	(To close the balance of the Income Summary account)
June 30	Capital	$2,000
	Withdrawals		$2,000
	(To close the withdrawals account to equity)

Ledger posting:

Capital
Date	Description	Ref.	Debit	Credit	Balance
Jun 1	Capital contributed by Emilia Meer			107,000	107,000 CR
Jun 30	Income summary (net income)			5,354	112,354 CR
Jun 30	Withdrawals by Emilia Meer			2,000	110,354 CR
Jun 30	Post-Closing Balance				110,354 CR
Income Summary
Date	Description	Ref.	Debit	Credit	Balance
Jun 30	Revenues			28,600	28,600 CR
Jun 30	Expenses		23,246		5,354 CR
Jun 30	Capital		5,354		0
Jun 30	Post-Closing Balance				0
Withdrawals
Date	Description	Ref.	Debit	Credit	Balance
Jun 21	Cash withdrawal by Emilia Meer		2,000		2,000 DR
Jun 30	Capital			2,000	0
Jun 30	Post-Closing Balance				0
Revenues
Date	Description	Ref.	Debit	Credit	Balance
Jun 4	Received cash for services			4,200	4,200 CR
Jun 8	Services provided on credit			5,100	9,300 CR
Jun 24	Received cash for services			5,600	14,900 CR
Jun 26	Services provided on credit			8,500	23,400 CR
Jun 30	Accrued revenue			3,100	26,500 CR
Jun 30	Revenue earned			2,100	28,600 CR
Jun 30	Income summary		28,600		0
Jun 30	Post-Closing Balance				0
Wages Expense
Date	Description	Ref.	Debit	Credit	Balance
Jun 14	Paid staff wages		5,200		5,200 DR
Jun 30	Accrued wages expense		10,540		15,740 DR
Jun 30	Income summary			15,740	0
Jun 30	Post-Closing Balance				0
Telephone Expense
Date	Description	Ref.	Debit	Credit	Balance
Jun 3	Paid telephone expense		160		160 DR
Jun 30	Accrued telephone expense		100		260 DR
Jun 30	Income summary			260	0
Jun 30	Post-Closing Balance				0
Advertising Expense
Date	Description	Ref.	Debit	Credit	Balance
Jun 30	Benefits consumed		4,400		4,400 DR
Jun 30	Income summary			4,400	0
Jun 30	Post-Closing Balance				0
Office Supplies Expense
Date	Description	Ref.	Debit	Credit	Balance
Jun 30	Supplies used		1,464		1,464 DR
Jun 30	Income summary			1,464	0
Jun 30	Post-Closing Balance				0
Depn Expense: Computer Equipment
Date	Description	Ref.	Debit	Credit	Balance
Jun 30	Depreciation-one month		392		392 DR
Jun 30	Income summary			392	0
Jun 30	Post-Closing Balance				0
Interest Expense
Date	Description	Ref.	Debit	Credit	Balance
Jun 30	Accrued interest expense		990		990 DR
Jun 30	Income summary			990	0
Jun 30	Post-Closing Balance				0