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    Closing Entries

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    Company's accounting records carried the following accounts.(amounts in millions)

    inventory $5,489

    interest earned $ 37

    accounts payable $ 1,993

    cost of goods sold $27,023

    other expenses $ 1, 597

    owner withdrawals $ 255

    selling expenses $ 6,832

    sales revenue $ 38,434

    interest expense $ 28

    receivables $ 587

    general admin.
    expense $ 671

    i) What I need to understand is how to Journalize all of the company's closing entries at January 31st, 2001. Using an owner capital account.

    ii) Also need assistance in setting up T-ACCOUNTS for the Income Summary account and the Owner CAPITAL account.

    post to these accounts and take their ending balances. One year earlier, at January 31st 2000, The Owner Capital balance was $8,740 million

    Any assistance would be appreciated.

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    https://brainmass.com/business/the-adjusting-process/closing-entries-recording-90703

    Solution Preview

    i) What I need to understand is how to Journalize all of the company's closing entries at January 31st, 2001. Using an owner capital account.

    In closing entries, we close the temporary accounts. The temporary accounts are the income statement accounts. These accounts are closed to income summary and then the income summary is closed to the owner capital account. The journal entries ...

    Solution Summary

    The solution explains how to journalize closing entries and posting to T-accounts.

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