Explanation Closing entries: The journal entries prepared to close the temporary accounts to Retained Earnings account are referred to as closing entries. The revenue, expense, and dividends accounts are referred to as temporary accounts because the information and figures in these accounts is held temporarily and consequently transferred to permanent account at the end of accounting year. Prepare closing entries for Company YCS. Date Account titles and Explanation Debit Credit December 31 Sales $261,000 Income summary $261,000 (To close revenue accounts) December 31 Income summary $221,700 Sales returns and allowances $21,000 Purchases $160,000 Wages expense

Bundle: College Accounting, Chapters 1-27, Loose-leaf Version, 23rd + Cengagenowv2, 2 Terms Printed Access Card

23rd Edition

ISBN: 9780357252352

Author: James A. Heintz, Robert W. Parry

Publisher: Cengage Learning

See similar textbooks

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

Videos

Question

Chapter 15, Problem 5CE

To determine

Prepare closing entries for Company YCS.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 15, Problem 4CE

Chapter 15, Problem 6CE

Students have asked these similar questions

Need answer the financial accounting question

What is the gross margin of this general accounting question?

Need help with this general accounting question

Chapter 15 Solutions

Bundle: College Accounting, Chapters 1-27, Loose-leaf Version, 23rd + Cengagenowv2, 2 Terms Printed Access Card

Ch. 15 - LO1 A multiple-step form of income statement...Ch. 15 - Prob. 2TF Ch. 15 - Prob. 3TF Ch. 15 - Prob. 4TF Ch. 15 - LO4 Accounts receivable turnover is the number of...Ch. 15 - Prob. 1MC Ch. 15 - Prob. 2MC Ch. 15 - Prob. 3MC Ch. 15 - Prob. 4MC Ch. 15 - Prob. 5MC

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Prepare closing entries for Company YCS.

Solution Summary: The author explains how to prepare closing entries for Company YCS. Revenue, expense, and dividends accounts are referred to as temporary accounts because the information and figures in these accounts is held temporarily and consequently transferred to permanent account at

Concept explainers

Videos

Prepare closing entries for Company YCS.

Want to see the full answer?

Chapter 15 Solutions