Debit Credit Accounts Cash 1700 8500 Office Supplies 100 155

Debit Credit Accounts Cash $1,700 8,500 Office Supplies 100 15,500 Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Uneaned Revenue $2,000 1,200 800 600 Miller, Capital 3,400 Miller, Withdrawals 3,000 Service Revenue 50,000 Salaries Expense 25,000 Supplies Expense 2,400 800 Total $58.000 $58,000

Solution

Closing Entries Entry No. Account Titles Debit Credit 1 Service Revenue $50,000 Income Summary $50,000 (to record transfer of revenue to Income statement) 2 Income Summary $29,200 Salaries Expense $25,000 Supplies Expense $2,400 Depreciation Expense - Equipment $1,800 (to record transfer of expenses to Income statement) 3 Income Summary $20,800 Miller Capital $20,800 (to record transfer of profit to capital account) The balance in owner capital after the closing entries are posted = Beginning balance + Profit transferred The balance in owner capital after the closing entries are posted = $3400 + $20800 = $24,200