Exercise 48 Macirg closng entries The adjusted trial balance

Exercise 4-8 Macirg closng entries The adjusted trial balance for Paddy\'s Cell Systems follows 2. Net lass, SE,900 PADDY\'S CELL SYSTEMS Adjusted Trial Balance March 31, 2017 S 27,600 Prepaid rent Office equipment Accumulated amortization-office equipment Accounts Salaries payable Unearned service revenue T. O\'Neill, capital P O\'Neill, withdrawals Service revenue Salaries expense Rent expense 168,900 26,050 9,300 payable Utilities expense $290,500 $290.500 1. Journalize the closing entries of Paddy\'s Cell Systems at March 31, 2017 Include 2. How much net income or net s did Paddy\'s Cell Systems earn for March 2017 How can you tell? Part 1 The sic Sructure f Accounting

Solution

Answer

Date

Accounts Title

Debit

Credit

31-Mar-17

Service Revenue

$          61,000.00

Income Summary

$          61,000.00

(revenue account with credit balance closed by debiting it)

31-Mar-17

Income Summary

$          67,900.00

Salaries expenses

$          45,200.00

Rent Expenses

$          15,650.00

Amortisation expense Office Equipment

$            1,200.00

Supplies expenses

$            2,650.00

Utilities expense

$            3,200.00

(expenses accounts with debit balance closed by crediting them)

31-Mar-17

P O Neil Capital

$            6,900.00

Income Summary

$            6,900.00

(income summary balance closed)

31-Mar-17

P O Neil Capital

$          15,000.00

P O Neil Withdrawals

$          15,000.00

(withdrawals account closed)

Working

Revenue:

A

Service Revenue

$           61,000.00

Expenses:

Salaries expenses

$           45,200.00

Rent Expenses

$           15,650.00

Amortisation expense Office Equipment

$             1,200.00

Supplies expenses

$             2,650.00

Utilities expense

$             3,200.00

B

Total Expenses

$           67,900.00

A - B

Net Income (Net Loss)

$           (6,900.00)

Date	Accounts Title	Debit	Credit
31-Mar-17	Service Revenue	$          61,000.00
	Income Summary		$          61,000.00
	(revenue account with credit balance closed by debiting it)
31-Mar-17	Income Summary	$          67,900.00
	Salaries expenses		$          45,200.00
	Rent Expenses		$          15,650.00
	Amortisation expense Office Equipment		$            1,200.00
	Supplies expenses		$            2,650.00
	Utilities expense		$            3,200.00
	(expenses accounts with debit balance closed by crediting them)
31-Mar-17	P O Neil Capital	$            6,900.00
	Income Summary		$            6,900.00
	(income summary balance closed)
31-Mar-17	P O Neil Capital	$          15,000.00
	P O Neil Withdrawals		$          15,000.00
	(withdrawals account closed)