v2cengagenowcom Calculator Closing entries Chart of Accounts

v2.cengagenow.com Calculator Closing entries Chart of Accounts Journal Instructions After the accounts have been adjusted at December 31, the end of the fiscal year, the following balances Kerry Buckner, Capital Kerry Buckner, Drawing Fees Earned Wages Expense Rent Expense Supplies Expense Miscellaneous Expense $3,484,000 38,500 1,290,000 733,000 68,700 13,650 8,400 All work saved. 6

Solution

Closing entries Transfer all expense account to income summary Transfer all revenue account to income summary Balance in income summary transfer to retained earnings account Date Account Titles and Explanation Debit Credit Dec 31. Income summary 823750 Wages expense 733000 Rent expense 68700 Supplies expense 13650 Miscellaneous expense 8400 (Closed all expense accounts) Dec 31. Fees earned 1290000 Income summary 1290000 (Closed all revenue accounts) Dec 31. Income summary 466250 Retained earnings 466250 (Balance in income summary transferred)