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

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ISBN: 9781337794756

Author: HEINTZ, James A.

Publisher: Cengage Learning,

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Prepare closing entries for Company YCS.

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explain how to look at an end-of-period spreadsheet and prepare the necessary closing entries.

In June 2021, Chan Lee opened a photography studio that provides services to public and private schools. His firm's Chart of Accounts and financial activities for the first month of operations appear below: Chan Lee Photography Studio Chart of Accounts ASSETS REVENUE 101 Cash 404 Service Fees 111 Accounts Receivable EXPENSES Rent Expense Salaries Expense Telephone Expense Utilities Expense Miscellaneous Expense Supplies Office Furniture 121 511 141 512 Office Equipment Photographic Equipment LIABILITIES 142 513 151 514 531 202 Accounts Payable OWNER’S EQUITY Chan Lee, Capital Chan Lee, Drawing 301 302 Date Transactions June 1 Chan Lee invested P300,000 cash in the business. 2 Issued Check # 1001 for P30,000 to pay the June rent. 5 Purchased desks and other office furniture for P50,000 from Office Plus; received Invoice # 5312, payable in 60 days. 6 Issued Check # 1002 for P150,000 to purchase photographic equipment. 7 Purchased photography supplies for P40,000, paid with Check # 1003.…

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Chapter 15 Solutions

College Accounting, Chapters 1-27

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

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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

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