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 journal entries of Company A for the year ended December 31 as follows: Date Account Title and Explanation Post ref. Debit ($) Credit ($) December 31 Income Summary 135,400 Factory Overhead (Subsidiary ledger account) 135,400 (To close the subsidiary factory overheads account) December 31 Factory Overhead 135,400 Income Summary 135,400 (To close the factory overhead account) December 31 Sales 588,000 Income Summary 588,000 (To close the sales revenue account) December 31 Income Summary 494,400 Cost of Goods Sold 395,400 Salaries Expense 64,900 Office Supplies Expense 2,100 Depreciation Expense-Office Equipment 4,000 Utilities Expense-Office 3,700 Bad Debt Expense 1,300 Income Tax Expense 23,000 (To close all expenses account) December 31 Income Summary 93,600

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN: 9781305666160

Author: James A. Heintz, Robert W. Parry

Publisher: Cengage Learning

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Chapter 27 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Ch. 27 - Prob. 1TF Ch. 27 - Under the perpetual inventory system, Cost of...Ch. 27 - Prob. 3TF Ch. 27 - Prob. 4TF Ch. 27 - The adjustment for factory overhead applied to...Ch. 27 - LO2 The adjustment for the amount of factory...Ch. 27 - The adjustment for depreciation expense for the...Ch. 27 - At the end of the accounting period, a credit...Ch. 27 - Prob. 4MC Ch. 27 - Prob. 5MC

Ch. 27 - LO2 Prepare adjusting entries at December 31 for J...Ch. 27 - Prob. 2CE Ch. 27 - Prob. 3CE Ch. 27 - Prob. 1RQ Ch. 27 - Prob. 2RQ Ch. 27 - Prob. 3RQ Ch. 27 - Prob. 4RQ Ch. 27 - Prob. 5RQ Ch. 27 - What are the distinctive features of ToyJoys...Ch. 27 - Prob. 7RQ Ch. 27 - Prob. 8RQ Ch. 27 - Prob. 9RQ Ch. 27 - ADJUSTING ENTRIES INCLUDING ADJUSTMENT FOR...Ch. 27 - Prob. 2SEA Ch. 27 - ADJUSTING JOURNAL ENTRIES Prepare the December 31...Ch. 27 - CLOSING JOURNAL ENTRIES Prepare closing journal...Ch. 27 - REVERSING JOURNAL ENTRIES Prepare reversing...Ch. 27 - WORK SHEET, ADJUSTING ENTRIES, AND FINANCIAL...Ch. 27 - FINANCIAL STATEMENTS The Income Statement and...Ch. 27 - ADJUSTING, CLOSING, AND REVERSING ENTRIES A...Ch. 27 - ADJUSTING ENTRIES INCLUDING ADJUSTMENT FOR...Ch. 27 - Prob. 2SEB Ch. 27 - Prob. 3SEB Ch. 27 - Prob. 4SEB Ch. 27 - REVERSING ENTRIES Prepare reversing journal...Ch. 27 - SPREADSHEET, ADJUSTING ENTRIES, AND FINANCIAL...Ch. 27 - FINANCIAL STATEMENTS The Income Statement and...Ch. 27 - Prob. 8SPB Ch. 27 - Prob. 1MYW Ch. 27 - Reese Manufacturing Company manufactures and sells...Ch. 27 - Drafts of the condensed income statement and...

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