Explanation Closing entries: Closing entries are those journal entries , which are passed to transfer the final balances of temporary accounts, (all revenues account, all expenses account and dividend) to the income summary account. These are passed at the end of the accounting period to transfer the final balances of the temporary accounts. In other words, the closing entries transfer the net income, or net loss, and dividends to the retained earnings account. The closing entries of Company R for August 31, 2017 are as follows: Closing entry for revenue account. Date Accounts title and Description Debit ($) Credit ($) August 31 Service revenue 34,600 Rent revenue 13,100 Income summary 47,700 (To record the closure of revenues account ) Description: Service revenue, and rent revenue has a normal credit balance of $47,700 in total, now to close this account, the service revenue account, and the rent revenue account must be debited with $47,700 and, income summary account must be credited with $47,700. In this closing entry, the service revenue account, and the rent revenue account balance is being transferred to the income summary account, to bring the revenues account balance to zero. Thereby, the income summary account balance gets increased by $47,700 and, the revenue account balance gets decreased by $47,700. Closing entry for expenses account. Date Accounts title and Description Debit ($) Credit ($) August 31 Income summary 33,600 Salaries and wages Expense 18,100 Rent Expense 10,800 Depreciation Expense 1,200 Insurance Expense 1,500 Supplies Expense 2,000 (To record the closure of expense account to income summary) Description: All expenses accounts have a normal debit balance, the total of expenses are $33,600 have to be closed by transferring these account balances to the income summary account. All expenses account must be credited, and the income summary account must be debited with $33,600. In this closing entry, all the expenses account balances are transferred to the income summary account, to bring the expenses account balances to zero. Thereby, both the income summary account, and the expenses account balances get decreased by $33,600...

7th Edition

ISBN: 9781119769736

Author: Kimmel

Publisher: WILEY

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Chapter 4, Problem 23E

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Prepare the closing entries of Company R.

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Chapter 4, Problem 22E

Chapter 4, Problem 2AP

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Chapter 4 Solutions

ACCOUNTING(LL)

Ch. 4 - Prob. 1Q Ch. 4 - Prob. 2Q Ch. 4 - Prob. 3Q Ch. 4 - Prob. 4Q Ch. 4 - Prob. 5Q Ch. 4 - Prob. 6Q Ch. 4 - Prob. 7Q Ch. 4 - Prob. 8Q Ch. 4 - Prob. 9Q Ch. 4 - Prob. 10Q

Ch. 4 - Prob. 11Q Ch. 4 - Prob. 12Q Ch. 4 - Prob. 13Q Ch. 4 - Prob. 14Q Ch. 4 - Prob. 15Q Ch. 4 - Prob. 16Q Ch. 4 - Prob. 17Q Ch. 4 - Prob. 18Q Ch. 4 - Prob. 19Q Ch. 4 - Prob. 20Q Ch. 4 - Prob. 21Q Ch. 4 - Prob. 22Q Ch. 4 - Prob. 23Q Ch. 4 - Prob. 24Q Ch. 4 - Prob. 25Q Ch. 4 - Prob. 26Q Ch. 4 - Prob. 27Q Ch. 4 - Prob. 28Q Ch. 4 - Prob. 29Q Ch. 4 - Prob. 30Q Ch. 4 - Prob. 31Q Ch. 4 - Prob. 32Q Ch. 4 - Prob. 33Q Ch. 4 - Prob. 34Q Ch. 4 - Prob. 35Q Ch. 4 - Prob. 36Q Ch. 4 - Prob. 1BE Ch. 4 - Prob. 2BE Ch. 4 - Prob. 3BE Ch. 4 - Prob. 4BE Ch. 4 - Prob. 5BE Ch. 4 - Prob. 6BE Ch. 4 - Prob. 7BE Ch. 4 - Prob. 8BE Ch. 4 - Prob. 9BE Ch. 4 - Prob. 10BE Ch. 4 - Prob. 11BE Ch. 4 - Prob. 12BE Ch. 4 - Prob. 13BE Ch. 4 - Prob. 14BE Ch. 4 - Prob. 15BE Ch. 4 - Prob. 1DIE Ch. 4 - Prob. 2DIE Ch. 4 - Prob. 3DIE Ch. 4 - Prob. 4ADIE Ch. 4 - Prob. 4BDIE Ch. 4 - Prob. 1E Ch. 4 - Prob. 2E Ch. 4 - Prob. 3E Ch. 4 - Prob. 4E Ch. 4 - Prob. 5E Ch. 4 - Prob. 6E Ch. 4 - Prob. 7E Ch. 4 - Prob. 8E Ch. 4 - Prob. 9E Ch. 4 - Prob. 10E Ch. 4 - Prob. 11E Ch. 4 - Prob. 12E Ch. 4 - Prob. 13E Ch. 4 - Prob. 14E Ch. 4 - Prob. 15E Ch. 4 - Prob. 17E Ch. 4 - Prob. 18E Ch. 4 - Prob. 20E Ch. 4 - Prob. 21E Ch. 4 - Prob. 22E Ch. 4 - Prob. 23E Ch. 4 - Prob. 2AP Ch. 4 - Prob. 3AP Ch. 4 - Prob. 4AP Ch. 4 - Prob. 5AP Ch. 4 - Prob. 6AP Ch. 4 - Prob. 7AP Ch. 4 - Prob. 1CACR Ch. 4 - Prob. 2CACR Ch. 4 - Prob. 3CACR Ch. 4 - Prob. 4CACR Ch. 4 - Prob. 1EYCT Ch. 4 - Prob. 2EYCT Ch. 4 - Prob. 3EYCT Ch. 4 - Prob. 4EYCT Ch. 4 - Prob. 6EYCT Ch. 4 - Prob. 7EYCT Ch. 4 - Prob. 8EYCT Ch. 4 - Prob. 9EYCT Ch. 4 - Prob. 1IFRS

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