Given are the adjusted account balances as of December 31st, 2001:
accounts payable $33,000
service revenue $84,000
depreciation expense-building $12,000
salary expense $29,000
unearned service revenue $24,000
pre paid rent $9,000
supplies expense $6,000
note payable $70,000
accounts receivable $32,000
accumulated depreciation -building $12,000
interest revenue $15,000
interest payable $3,000
rent expense $15,000
interest expense $4,000© BrainMass Inc. brainmass.com October 24, 2018, 8:10 pm ad1c9bdddf
The purpose of closing entry is to close out the temporary accounts such as revenues, expenses, and withdrawals into the owner's equity account. This process is facilitated by the introduction of a temporary account created for closing process. This account is known as the income summary account. For revenue, we will need to debit revenue and ...
This solution is comprised of a detailed explanation to answer how to prepare a closing entry.
Prepare the closing entries. Use J14 for the journal page.
From the attached worksheet and income statement, complete the following:
(c) Prepare the closing entries. Use J14 for the journal page.
(d) Post the closing entries. Use the three-column form of account. Income Summary is account No. 350.View Full Posting Details