The Income Statement and Balance Sheet columns below are from the work sheet of a merchandising firm, J. D. Enterprise, for the year ended December 31, 20--. J. D. Enterprise Work Sheet (partial) For the year ended December 31, 20-- Account Title Income Statement Balance Sheet Debit Credit Debit Credit Cash 4,000 Accounts Receivable 12,500 Merchandise Inventory 8,000 Store Supplies 550 Office Supplies 300 Prepaid Insurance 750 Store Equipment 33,000 Accumulated Depreciation—Store Equipment 19,000 Office Equipment 9,000 Accumulated Depreciation—Office Equipment 5,000 Accounts Payable 9,000 Salaries Payable 200 Long-Term Notes Payable 18,000 J. D. Allen, Capital 25,300 J. D. Allen, Drawing 16,000 Income Summary 8,500 8,000 Sales 29,900 Sales Returns and Allowances 250 Purchases 11,500 Purchases Returns and Allowances 350 Purchases Discounts 200 Sales Salary Expense (selling) 4,600 Office Salary Expense (general) 3,500 Store Supplies Expense (selling) 650 Office Supplies Expense (general) 475 Insurance Expense (general) 525 Depreciation Expense—Store Equipment (selling) 400 Depreciation Expense—Office Equipment (general) 450 30,850 38,450 84,100 76,500 Net Income 7,600 7,600 38,450 38,450 84,100 84,100 Required: Prepare the closing entries for the merchandising firm. If an amount box does not require an entry, leave it blank.

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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Question

The Income Statement and Balance Sheet columns below are from the work sheet of a merchandising firm, J. D. Enterprise, for the year ended December 31, 20--.

J. D. Enterprise Work Sheet (partial) For the year ended December 31, 20--
Account Title	Income Statement	Balance Sheet
	Debit	Credit	Debit	Credit
Cash			4,000
Accounts Receivable			12,500
Merchandise Inventory			8,000
Store Supplies			550
Office Supplies			300
Prepaid Insurance			750
Store Equipment			33,000
Accumulated Depreciation—Store Equipment				19,000
Office Equipment			9,000
Accumulated Depreciation—Office Equipment				5,000
Accounts Payable				9,000
Salaries Payable				200
Long-Term Notes Payable				18,000
J. D. Allen, Capital				25,300
J. D. Allen, Drawing			16,000
Income Summary	8,500	8,000
Sales		29,900
Sales Returns and Allowances	250
Purchases	11,500
Purchases Returns and Allowances		350
Purchases Discounts		200
Sales Salary Expense (selling)	4,600
Office Salary Expense (general)	3,500
Store Supplies Expense (selling)	650
Office Supplies Expense (general)	475
Insurance Expense (general)	525
Depreciation Expense—Store Equipment (selling)	400
Depreciation Expense—Office Equipment (general)	450
	30,850	38,450	84,100	76,500
Net Income	7,600			7,600
	38,450	38,450	84,100	84,100

Required:

Prepare the closing entries for the merchandising firm. If an amount box does not require an entry, leave it blank.

POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
Dec. 31
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Dec. 31
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17 Dec. 31
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20 Dec. 31
20
6.

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