Use the following income statement for the year 2015 for Bel

Use the following income statement for the year 2015 for Belle Company to prepare entries to close the revenue and expense accounts for the company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Service revenue $85,000 Expenses: Salaries and Wages Expense $40,000 Rent Expense 12,500 Advertising Expense 8,700 Total expenses 61,200 Net income (loss) $23,800

Solution

a) To Close Revenue account Debit Credit

Service Revenue $85000

Income Summary $85000

b) To Close Expense Account

Debit Credit

Income Summary $61200

Salaries and Wages Expense $40000

Rent Expense $12500

  Advertising Expense $8700