Test 2 Chapters 3 and4 Problem 1 15 Points Ledger Account Ba

Test 2: Chapters 3 and4 Problem 1: (15 Points) Ledger Account Balances for Smith Company Account Title Cash Accounts Receivable Office Supplies Equipment Accumulated Depreciation-Equipment Salaries Payable T. Bryan, Capital T. Bryan, Withdrawals Service Revenue Supplies Expense Salaries Expense Rent Expense Depreciation Expense-Equipment $6,000 2,200 1,000 15,000 $9,000 600 15,000 ??? 10,800 1,300 4,600 800 1,500 Prepare the Closing Entries:

Solution

Problem 1

	Journal entry
Date	Accounts	Debit	Credit
Dec 31	Service Revenue	$10,800.00
	Income Summary		$10,800.00
	To close revenue.
Dec 31	Income Summary	$8,200.00
	Salaries Expenses		$4,600.00
	Rent Expenses		$800.00
	Depreciation Expense—Equipment		$1,500.00
	Supplies Expense		$1,300.00
	To close expenses.
Dec 31	Income Summary ($10,800 - $8200)	$2,600.00
	T Brayan Capital		$2,600.00
	To close Income Summary.
Dec 31	T Brayan Capital	$3,000.00
	T Brayan Drawings		$3,000.00
	To close Drawings