ACCOUNTING-W/CENGAGENOWV2 ACCESS
26th Edition
ISBN: 9781305716780
Author: WARREN
Publisher: CENGAGE L
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Chapter 4, Problem 4.15EX
Closing entries
Prior to its closing, Income Summary had total debits of $1,190,500 and total credits of $1,476,300.
Briefly explain the purpose served by the income summary account and the nature of the entries that resulted in the $1,190,500 and the $1,476,300.
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When the "Income Summary" account has a credit account balance of $100,000 after closing entries have been made to it, what does this imply?
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GENERAL JOURNAL
PAGE
POST.
GENERAL
DOC.
NO.
DATE
ACCOUNT TITLE
REF.
DEBIT
CREDIT
June
Adjusting Entries
30 Supplies Expense
Supplies
30 Insurance Expense
1,489.00
1,489.00 3
3
750.00
4.
Prepaid Insurance
750.00 5
Closing Entries
30 Sales
8,772.00
Income Summary
8,772.00
30 Income Summary
5,230.00
6.
Advertising Expense
1,000.00 10
10
Insurance Expense
750.00 1
11
Miscellaneous Expense
216.00 12
12
1,000.00 13
1,489.00 14
Rent Expense
13
Supplies Expense
Utilities Expense
14
775.00 15
15
3,542.00
16
30 Income Summary
Jack Black, Capital
30 Jack Black, Capital
16
3,542.00 17
17
1,750.00
18
18
Jack Black, Drawing
1,750.00 19
19
20
20
Directions: complete the Income Summary t-account. Use the closing entries
Identify which of the following accounts would be listed on the company’s Post-Closing TrialBalance.A. Accounts ReceivableB. Accumulated DepreciationC. CashD. Office ExpenseE. Note PayableF. Rent RevenueG. Retained EarningsH. Unearned Rent Revenue
Chapter 4 Solutions
ACCOUNTING-W/CENGAGENOWV2 ACCESS
Ch. 4 - Why do some accountants prepare an end-of-period...Ch. 4 - Describe the nature of the assets that compose the...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Why are closing entries required at the end of an...Ch. 4 - What is the difference between adjusting entries...Ch. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQCh. 4 - What is the natural business year?Ch. 4 - Prob. 10DQ
Ch. 4 - Prob. 4.1APECh. 4 - Flow of accounts into financial statements The...Ch. 4 - Statement of owner's equity Marcie Davies owns and...Ch. 4 - Statement of owners equity Blake Knudson owns and...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Prob. 4.3BPECh. 4 - Closing entries After the accounts have been...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Prob. 4.6APECh. 4 - Prob. 4.6BPECh. 4 - Flow of accounts into financial statements The...Ch. 4 - Prob. 4.2EXCh. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Prob. 4.6EXCh. 4 - Prob. 4.7EXCh. 4 - Statement of owner's equity Apex Systems Co....Ch. 4 - Statement of owners equity; net loss Selected...Ch. 4 - Prob. 4.10EXCh. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Optimum Weight Loss Co. offers...Ch. 4 - Prob. 4.13EXCh. 4 - Prob. 4.14EXCh. 4 - Closing entries Prior to its closing, Income...Ch. 4 - Closing entries with net income After all revenue...Ch. 4 - Closing entries with net loss Mira Services Co....Ch. 4 - Prob. 4.18EXCh. 4 - Prob. 4.19EXCh. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Prob. 4.21EXCh. 4 - Prob. 4.22EXCh. 4 - Completing an end-of-period spreadsheet List (a)...Ch. 4 - Prob. 4.24EXCh. 4 - Prob. 4.25EXCh. 4 - Appendix Completing an end-of-period spreadsheet...Ch. 4 - Appendix Adjustment data on an end-of-period...Ch. 4 - Appendix Completing an end-of-period spreadsheet...Ch. 4 - Prob. 4.1APRCh. 4 - Financial statements and closing entries Finders...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - The unadjusted trial balance of PS Music as of...Ch. 4 - Kelly Pitney began her consulting business, Kelly...Ch. 4 - Prob. 4.1CPCh. 4 - Financial statements The following is an excerpt...Ch. 4 - Financial statements Assume that you recently...
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- Common stock-$10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,000 shares of its own stock at $23 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 1,900 of its treasury shares at $27 cash per share. August 22 Sold 3,100 of its treasury shares at $20 cash per share. September 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. December 31 Closed the $206,500 credit balance (from net income) in the Income Summary account to Retained Earnings. Requirement General Journal General Ledger View…arrow_forwardAfter preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $27,000. The entry to close the income summary account will be: Multiple Choice Debit Income Summary $27,000; credit Owner Capital $27,000. Debit Owner Withdrawals $27,000; credit Income Summary $27,00. Debit Income Summary $27,000; credit Owner Withdrawals $27,000. Debit Owner Withdrawals $27,000; Credit Owner Capital $27,000. Debit Owner Capital $27,000; credit Income Summary $27,000.arrow_forwardFrom the partial worksheet, journalize the closing entries for December 31 for A. Slow Co. Start by journalizing the closing entry for revenues. (See attached images for clearer info) Journal Entry Date Accounts PR Dr. Cr. Dec. 31 Journalize the closing entry for the expense and contra-revenue accounts. Journal Entry Date Accounts PR Dr. Cr. Dec. 31 Journalize the closing entry for the Income Summary account. Journal Entry Date Accounts PR…arrow_forward
- Use the following information to answer Exercises E5-23 through E5-25. The adjusted trial balance of Quality Office Systems at March 31, 2018, follows: Journalizing closing entries Requirements Journalize the required dosing entries at March 31, 2018. Set up T-accounts for Income Summary; Retained Earnings; and Dividends. Post the closing entries to the T-accounts, and calculate their ending balances. How much was Quality Office’s net income or net loss?arrow_forwardDirections: complete the Income Summary t-account. Use the closing entries provided to determine the appropriate amounts for A, B, and C. C represents the total amount in Income Summary after closing. Add your answers in t-account below. Remember, the starting/ending balance of the Income Summary temporary account is zero. A dash (-) represents zero. Complete the income summary T-account.arrow_forwardThe F. Mercury, Capital account has a credit balance of $29,750 before closing entries are made. If total revenues for the period are $92,700, total expenses are $68,300, and withdrawals are $15,750, what is the ending balance in the F. Mercury, Capital account after all closing entries are made? Multiple Choice O оо O O $38,400. $14,000. $24,400. $54,150. $29,750.arrow_forward
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