Record the entry to close the revenue accounts. **Journal Entry Worksheet for Closing Entries**To conclude the accounting cycle, it's essential to properly record closing entries for revenue accounts. Follow the steps outlined below using the journal entry worksheet provided.### Instructions1. **Record the Entry to Close Revenue Accounts:** - Note: Always enter debits before credits.2. **Closing Entry Transaction:** - **Date:** December 31 - **General Journal Account Entries:** - **Service Revenue:** This account will be listed first and typically debited to reduce the revenue account balance to zero. - **Retained Earnings:** This account will often be credited with the total amount transferred from the service revenue account, thereby updating the retained earnings balance.3. **Worksheet Navigation:** - Use the numbered tabs (1, 2, 3) to navigate through the worksheet. - Press the "Record entry" button to save your entry. - Use the "Clear entry" button to reset the form if needed. - Click "View general journal" to examine all recorded entries.4. **Additional Note:** - If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.This process ensures that revenue accounts are closed and the balances are transferred to retained earnings at the end of the accounting period. **Required Information**[The following information applies to the questions displayed below.]The general ledger of Zips Storage at January 1, 2024, includes the following account balances:| Accounts | Debits | Credits ||--------------------------|----------|-----------|| Cash | $25,400 | || Accounts Receivable | 16,200 | || Prepaid Insurance | 13,600 | || Land | 156,000 | || Accounts Payable | | $7,500 || Deferred Revenue | | 6,000 || Common Stock | | 151,600 || Retained Earnings | | 46,100 || **Totals** | **$211,200** | **$211,200** |**Summary of the Transactions for the Year:**1. **January 9:** Provide storage services for cash, $142,100, and on account, $56,200.2. **February 12:** Collect on accounts receivable, $52,300.3. **April 25:** Receive cash in advance from customers, $13,700.4. **May 6:** Purchase supplies on account, $10,800.5. **July 15:** Pay property taxes, $9,300.6. **September 10:** Pay on accounts payable, $12,200.7. **October 11:** Pay salaries, $131,600.8. **November 20:** Issue shares of common stock in exchange for $35,000 cash.9. **December 30:** Pay $3,600 cash dividends to stockholders.

In accounting, closing entries are journal entries that are made to close temporary or nominal…

Required information [The following information applies to the questions displayed below.] The general ledger of Zips Storage at January 1, 2024, includes the following account balances: Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals Debits $25,400 16,200 13,600 156,000 5. July 15 6. September 10 7. October 31 8. November 20 9. December 30 $211, 200 Credits $7,500 6,600 151,000 46,100 $211, 200 The following is a summary of the transactions for the year: 1. January 9 2. February 12 3. April 25 4. May 6 Provide storage services for cash, $142,100, and on account, $56,200. Collect on accounts receivable, $52,300. Receive cash in advance from customers, $13,700. Purchase supplies on account, $10,800. Pay property taxes, $9,300. Pay on accounts payable, $12,200. Pay salaries, $131,600. Issue shares of common stock in exchange for $35,000 cash. Pay $3,600 cash dividends to stockholders.

Required information [The following information applies to the questions displayed below.] The general ledger of Zips Storage at January 1, 2024, includes the following account balances: Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals Debits $25,400 16,200 13,600 156,000 5. July 15 6. September 10 7. October 31 8. November 20 9. December 30 $211, 200 Credits $7,500 6,600 151,000 46,100 $211, 200 The following is a summary of the transactions for the year: 1. January 9 2. February 12 3. April 25 4. May 6 Provide storage services for cash, $142,100, and on account, $56,200. Collect on accounts receivable, $52,300. Receive cash in advance from customers, $13,700. Purchase supplies on account, $10,800. Pay property taxes, $9,300. Pay on accounts payable, $12,200. Pay salaries, $131,600. Issue shares of common stock in exchange for $35,000 cash. Pay $3,600 cash dividends to stockholders.

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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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

Record the entry to close the revenue accounts.

**Journal Entry Worksheet for Closing Entries**

To conclude the accounting cycle, it's essential to properly record closing entries for revenue accounts. Follow the steps outlined below using the journal entry worksheet provided.

### Instructions

1. **Record the Entry to Close Revenue Accounts:**
- Note: Always enter debits before credits.

2. **Closing Entry Transaction:**

- **Date:** December 31

- **General Journal Account Entries:**
- **Service Revenue:** This account will be listed first and typically debited to reduce the revenue account balance to zero.
- **Retained Earnings:** This account will often be credited with the total amount transferred from the service revenue account, thereby updating the retained earnings balance.

3. **Worksheet Navigation:**
- Use the numbered tabs (1, 2, 3) to navigate through the worksheet.
- Press the "Record entry" button to save your entry.
- Use the "Clear entry" button to reset the form if needed.
- Click "View general journal" to examine all recorded entries.

4. **Additional Note:**
- If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.

This process ensures that revenue accounts are closed and the balances are transferred to retained earnings at the end of the accounting period.

**Required Information**

[The following information applies to the questions displayed below.]

The general ledger of Zips Storage at January 1, 2024, includes the following account balances:

| Accounts | Debits | Credits |
|--------------------------|----------|-----------|
| Cash | $25,400 | |
| Accounts Receivable | 16,200 | |
| Prepaid Insurance | 13,600 | |
| Land | 156,000 | |
| Accounts Payable | | $7,500 |
| Deferred Revenue | | 6,000 |
| Common Stock | | 151,600 |
| Retained Earnings | | 46,100 |
| **Totals** | **$211,200** | **$211,200** |

**Summary of the Transactions for the Year:**

1. **January 9:** Provide storage services for cash, $142,100, and on account, $56,200.
2. **February 12:** Collect on accounts receivable, $52,300.
3. **April 25:** Receive cash in advance from customers, $13,700.
4. **May 6:** Purchase supplies on account, $10,800.
5. **July 15:** Pay property taxes, $9,300.
6. **September 10:** Pay on accounts payable, $12,200.
7. **October 11:** Pay salaries, $131,600.
8. **November 20:** Issue shares of common stock in exchange for $35,000 cash.
9. **December 30:** Pay $3,600 cash dividends to stockholders.

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