
2.
Journalize the
2.

Explanation of Solution
Journalizing: Journalizing is a process of recording the financial transactions of a business in a chronological order. Based on the recorded entries, the accounts are posted to the relevant ledger accounts.
Record office supplies used:
General Journal | Page 3 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Supplies expense | 3,000 | ||
Supplies | 3,000 | |||
(To record supplies used) |
Table (1)
- Since supplies expense is an expense, expenses are increased. Hence, supplies expense is debited.
- Since supplies are asset, assets are decreased. Hence, supplies account is credited.
Record expire advertising expense:
General Journal | Page 3 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Advertising expense | 1,200 | ||
Prepaid advertising | 1,200 | |||
(To record expired advertising expense) |
Table (2)
- Advertising expense is an expense and expenses are increased. Hence, advertising expense is debited.
- Prepaid advertising is an asset and assets are decreased. Hence, prepaid advertising is credited.
Record
General Journal | Page 3 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Depreciation expense | 1,500 | ||
| 1,500 | |||
(To record depreciation expense) |
Table (3)
- Depreciation expense is an expense and expenses are increased. Hence, depreciation expense is debited.
- Accumulated depreciation-equipment is a contra-asset and it is increased. Hence, Accumulated depreciation-equipment is credited.
3.
Journalize the closing entries.
3.

Explanation of Solution
General Journal | Page 4 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Fees income | 46,800 | ||
Income summary | 46,800 | |||
(To close fees income) |
Table (4)
- Fees income is revenue account and it is closed at the end of the year. Hence, fees income account is debited.
- Since the amount of fees income transferred to income summary, the account of income summary increases. Hence, income summary account is credited.
General Journal | Page 4 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Income summary | 21,900 | ||
Depreciation expense | 1,500 | |||
Salaries expense | 14,400 | |||
Supplies expense | 3,000 | |||
Utilities expense | 1,800 | |||
Advertising expense | 1,200 | |||
(To close expenses account) |
Table (5)
- The expenses account balances are transferred to the income summary account, to bring the expenses account balances to zero. Thus, income summary is debited.
- Depreciation expense is an expense and expenses are decreased. Hence, depreciation expense is credited.
- Salaries expense is an expense and expenses are decreased. Hence, salaries expense is credited.
- Supplies expense is an expense and expenses are decreased. Hence, supplies expense is credited.
- Utilities expense is an expense and expenses are decreased. Hence, utilities expense is credited.
- Advertising expense is an expense and expenses are decreased. Hence, advertising expense is credited.
General Journal | Page 4 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Income summary | 24,900 | ||
SJ Capital | 24,900 | |||
(To close the amount of income summary) |
Table (6)
- The amount of income summary is decreased. Hence, the income summary account is debited.
- The capital account increases. Hence, the SJ capital gets credited.
General Journal | Page 4 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | SJ Capital | 8,400 | ||
SJ Drawings | 8,400 | |||
(To close the amount of drawing account) |
Table (7)
- The amount of drawings adjusted from the capital account, the amount of capital account decreases. Hence the account of SJ Capital debited.
- The account of drawings increases. Hence, the SJ Drawings gets credited.
1, 2 and 3.
Record the balance as of December 31, 2019 in the ledger accounts and
1, 2 and 3.

Explanation of Solution
Record the balance as of December 31, 2019 in the ledger accounts and post the adjusting entries and closing entries.
Supplies Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 6,000 (debit) | ||
Adjusting | 3,000 | 3,000 (Debit) |
Table (8)
Prepaid Advertising Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 9,000 (debit) | ||
Adjusting | 1,200 | 7,800 (debit) |
Table (9)
Accumulated Depreciation Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Adjusting | 1,500 | 1,500 (credit) | |
Table (10)
SJ Capital Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 82,200 (credit) | ||
Closing | 24,900 | 107,100 (credit) | ||
Closing | 8,400 | 98,700 (credit) |
Table (11)
SJ Drawings Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 8,400 (debit) | ||
Closing | 8,400 | - |
Table (12)
Income Summary Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Closing | 46,800 | 46,800 (credit) | |
Closing | 21,900 | 24,900 (credit) | ||
Closing | 24,900 | - |
Table (13)
Fees Income Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 46,800 (credit) | ||
Closing | 46,800 | - |
Table (14)
Salaries Expense Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 14,400 (debit) | ||
Closing | 14,400 | - |
Table (15)
Utilities Expense Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 1,800 (debit) | ||
Closing | 1,800 | - |
Table (16)
Supplies Expense Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 3,000 | 3,000 (debit) | |
Closing | 3,000 | - |
Table (17)
Depreciation Expense Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 1,500 | 1,500 (debit) | |
Closing | 1,500 | - |
Table (18)
Advertising Expense Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Adjusting | 1,200 | 1,200 (debit) | |
Closing | 1,200 | - |
Table (19)
4.
Prepare a post-closing
4.

Explanation of Solution
Trial balance of Company CV is given below:
Company CV Post-closing Trial Balance December 31, 2019 | ||
Account Title |
Debit ($) |
Credit ($) |
Cash | 32,400 | |
6,000 | ||
Supplies | 3,000 | |
Prepaid Advertising | 7,800 | |
Equipment | 60,000 | |
Accumulated Depreciation | 1,500 | |
Accounts Payable | 9,000 | |
SJ, Capital | 98,700 | |
Total | 109,200 | 109,200 |
Table (20)
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