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Financial Accounting

Closing Entries

The end of the period account balances after adjustments of the Falcon Cleaners and Laundry are as follows:

Account Balances
(After Adjustments)

Cash $ 10,000
Cleaning Supplies 3,500
Prepaid Rent 3,600
Equipment 128,000
Accumulated Depreciation-Equipment 20,000
Accounts Payable 8,500
Common Stock 80,000
Retained Earnings 26,400
Dividends 9,000
Dry Cleaning Revenues 30,000
Laundry Revenues 4,000
Cleaning Supplies Expense 5,000
Depreciation Expense 3,000
Rent Expense 900
Salaries Expense 5,400
Utilities Expense 500

Prepare the end of the period closing entries for the Falcon Cleaners and Laundry. You may omit journal entry explanations.

Solution Preview

Hi there,
<br>To close income statement accounts to retained earnings, you would do the following journal entry:
<br>DR: Dry cleaning revenues 30,000
<br>DR: Laundry revenues 4,000
<br>CR: Cleaning Supplies ...

Solution Summary

This problem involves the fundamentals of accounting