Homework SourseThis is a partial adjusted trial balance of Sunland Company
This is a partial adjusted trial balance of Sunland Company.
Prepare the closing entries at January 31, 2017.
| SUNLAND COMPANY Adjusted Trial Balance January 31, 2017 | ||||
| Debit | Credit | |||
| Supplies | $770 | |||
| Prepaid Insurance | 1,470 | |||
| Salaries and Wages Payable | $1,040 | |||
| Unearned Service Revenue | 720 | |||
| Supplies Expense | 800 | |||
| Insurance Expense | 490 | |||
| Salaries and Wages Expense | 1,890 | |||
| Service Revenue | 4,330 |
Solution
Answer :- Journal entries
Income Summary A/c Dr. (800 + 490 + 1890)
To Supplies expense A/c
To Insurance expense A/c
To Salaries and wages expense A/c
3180
800
490
1890
Service revenue A/c Dr.
To Income summary A/c
4330
4330
Income summary A/c Dr. (4330 - 3180)
To Retained earnings A/c
1150
1150
Note :- First journal entry is for closing of expense accounts. Second journal entry is for closing of revenue account and Third journal entry is for closing of net income / (loss) account.
| Date | General journal | Debit ($) | Credit ($) |
| Jan. 31, 2017 | Income Summary A/c Dr. (800 + 490 + 1890) To Supplies expense A/c To Insurance expense A/c To Salaries and wages expense A/c | 3180 |
800 490 1890 |
| Jan. 31, 2017 | Service revenue A/c Dr. To Income summary A/c | 4330 | 4330 |
| Jan. 31, 2017 | Income summary A/c Dr. (4330 - 3180) To Retained earnings A/c | 1150 | 1150 |
