Chapter 5, Problem 2PA

The partial work sheet for Ho Consulting for May follows:

Required

1. 1. Write the owner’s name on the Capital and Drawing T accounts.
2. 2. Record the account balances in the T accounts for owner’s equity, revenue, and expenses.
3. 3. Journalize the closing entries using the four steps in correct order. Number the closing entries 1 through 4.
4. 4. Post the closing entries to the T accounts immediately after you journalize each one to see the effect of the closing entries. Number the closing entries 1 through 4.

   Check Figure

   Debit to Income Summary,

   second entry, $5,840