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    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.

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    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