The ledger accounts of AXX Internet Company appear as follows on March 31, 20X1: 101Cash  $65,000 111Accounts receivable 35,860 121 Supplies 9,100 131 Prepaid insurance 23,500 141Equipment 103,000 142 Accumulated depreciation—Equipment 39,820 202 Accounts payable 11,500 301 Aretha Hinkle, Capital 115,000 302Aretha Hinkle, Drawing 11,500 401Fees income 311,000 510Depreciation expense—Equipment 19,660 511Insurance expense 9,900 514Rent expense 31,500 517Salaries expense 151,000 518Supplies expense 4,100 519Telephone expense 5,300 523Utilities expense 7,900  Required: Prepare the closing entries. Post the transactions into the appropriate ledger accounts. Hint: Be sure to enter beginning balances.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The ledger accounts of AXX Internet Company appear as follows on March 31, 20X1:

101Cash  $65,000

111Accounts receivable 35,860

121 Supplies 9,100

131 Prepaid insurance 23,500

141Equipment 103,000

142 Accumulated depreciation—Equipment 39,820

202 Accounts payable 11,500

301 Aretha Hinkle, Capital 115,000

302Aretha Hinkle, Drawing 11,500

401Fees income 311,000

510Depreciation expense—Equipment 19,660

511Insurance expense 9,900

514Rent expense 31,500

517Salaries expense 151,000

518Supplies expense 4,100

519Telephone expense 5,300

523Utilities expense 7,900 

Required:

  1. Prepare the closing entries.
  2. Post the transactions into the appropriate ledger accounts. Hint: Be sure to enter beginning balances.
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