Chapter 5, Problem 2PA

The partial work sheet for Ho Consulting for May follows:

Required

If you are using working papers, complete the following:

1. 1. a.    Write the owner’s name on the Capital and Drawing T accounts.

b.    Record the account balances in the T accounts for owner’s equity, revenue, and expenses.

1. 2. Journalize the closing entries using the four steps in correct order. Number the closing entries 1 through 4.
2. 3. 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