**Closing Journal Entries**To effectively close the books at year-end, it's important to make the following journal entries based on the given account balances. The accounts and their balances are listed below:1. **Accounts with Debit Balances:** - **Accounts receivable:** $45,000 - **Prepaid insurance:** $4,500 - **Land:** $50,000 - **Dividends:** $2,000 - **Selling expenses:** $34,500 - **Administrative expenses:** $12,750 - **Miscellaneous expense:** $1,2502. **Accounts with Credit Balances:** - **Accounts payable:** $39,000 - **Notes payable:** $55,000 - **Retained earnings:** $12,000 - **Fees earned revenue:** $65,000**Procedure:**- **Identify Temporary Accounts:** Dividends, selling expenses, administrative expenses, miscellaneous expense, and fees earned revenue are temporary accounts. - **Close Revenues to Income Summary:** - **Debit** Fees Earned Revenue: $65,000 - **Credit** Income Summary: $65,000- **Close Expenses to Income Summary:** - **Debit** Income Summary: (Total of all expenses) - **Credit** Selling Expenses, Administrative Expenses, Miscellaneous Expense- **Close Income Summary to Retained Earnings:** - Calculate the net income/loss (Fees earned revenue - Total expenses). - (Debit or credit depending on net income or loss)- **Close Dividends to Retained Earnings:** - **Debit** Retained Earnings: $2,000 - **Credit** Dividends: $2,000This process ensures that temporary accounts are reset for the new accounting period and that profit or loss is reflected in retained earnings.

Closing entries are used to transfer the balance from a temporary account to a permanent account. We…

PA2. LO 5.1 The following selected accounts and normal balances existed at year-end. Make the four journal entries required to close the books: Accounts receivable Prepaid insurance Land Accounts payable Notes payable Retained earnings Dividends Fees earned revenue Selling expenses Administrative expenses Miscellaneous expense $45,000 4,500 50,000 39,000 55,000 12,000 2,000 65,000 34,500 12,750 1,250

PA2. LO 5.1 The following selected accounts and normal balances existed at year-end. Make the four journal entries required to close the books: Accounts receivable Prepaid insurance Land Accounts payable Notes payable Retained earnings Dividends Fees earned revenue Selling expenses Administrative expenses Miscellaneous expense $45,000 4,500 50,000 39,000 55,000 12,000 2,000 65,000 34,500 12,750 1,250

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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d) Golden Music Company uses the allowance method to estimate uncollectible accounts receivable. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $17,000 $1,500 $1,200 $500 $900 $21,100 1% 1-30 days past due 31–60 days past due 61–90 days past due Over 90 days past due Total Accounts Receivable 3% 6% 12% 25% On 31 December 2021, the company has found out that a customer went bankrupt and management agreed that the accounts receivable of $900 included above which is past due for over 90 days can be written off. i) Compute the total estimated uncollectible accounts receivable as at 31 December 2021. ii) Prepare the journal entry year-end to write off the accounts receivable of $900 and the adjusting journal entry to record the bad debts for the year ended 31 December 2021.
At what amount will accounts receivable for Anderson Company be reported on the balance sheet if the gross receivable balance is $52,000 and the allowance for doubtful accounts is estimated at 4% of gross receivables? Select one: A. $28,200 B. $49,920 C. $52,960 D. $47,000
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Journal adjusting entry for Office supplies on hand at 30 Sept is $6,050 incl. GST.