The ledger of Ivanhoe Company contains the following balances: Owner's Capital $31,800, Owner's Drawings $1,800, Service Revenue $50,000, Salaries and Wages Expense $25,600, and Supplies Expense $6,300. Prepare the closing entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Service Revenue 50,000 Income Summary 50,000 (To close revenue account) Dec. 31 Income Summary Salaries and Wages Expense 25,600 Supplies Expense 6,300 (To close expense accounts) Dec. 31 Income Summary Owner's Capital (To close net income/ (loss)) Dec. 31 Owner's Capital Owner's Drawings (To close drawings)
The ledger of Ivanhoe Company contains the following balances: Owner's Capital $31,800, Owner's Drawings $1,800, Service Revenue $50,000, Salaries and Wages Expense $25,600, and Supplies Expense $6,300. Prepare the closing entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Service Revenue 50,000 Income Summary 50,000 (To close revenue account) Dec. 31 Income Summary Salaries and Wages Expense 25,600 Supplies Expense 6,300 (To close expense accounts) Dec. 31 Income Summary Owner's Capital (To close net income/ (loss)) Dec. 31 Owner's Capital Owner's Drawings (To close drawings)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Brief Exercise 4-04
The ledger of Ivanhoe Company contains the following balances: Owner's Capital $31,800, Owner's Drawings $1,800, Service Revenue $50,000, Salaries and Wages Expense $25,600, and Supplies Expense $6,300.
Prepare the closing entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31 Service Revenue
50,000
Income Summary
50,000
(To close revenue account)
Dec. 31 Income Summary
Salaries and Wages Expense
25,600
Supplies Expense
6,300
(To close expense accounts)
Dec. 31 Income Summary
Owner's Capital
(To close net income/ (loss))
Dec. 31 Owner's Capital
Owner's Drawings
(To close drawings)
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