Chapter 4, Problem S4.11SE

Posting closing entries directly to T−accounts

Learning Objective 3

The following balances appear on the books of Sarah Simmons Enterprises: Simmons, Capital, $29,600; Simmons, Withdrawals $10,500; Income Summary, S0; Service Revenue, S24,500; Salaries Expense, $6,200; Rent Expense, $3,500; and Advertising Expenses, $2,000. All accounts have normal balances.

Requirements

1. Open a T-account for each account, and insert its adjusted balance as given (denote as Adj. Bal.) at December 31.
2. Post the closing entries to the accounts, denoting posted amounts as Clos.
3. Compute the ending balance of Simmons, Capital.