Question

1. Journalize and post the closing entries

ADIUSTMENTS DEBIT CREDIT ADJUSTED TRIAL BALANCE DEBIT INCOME STATEMENT CREDIT MALANCE SHEET Debat TRIAL RALANCE DEBIT CREDIT 43171 3165 2376 3155 2276 405 7000 7000 890 3500 3500 ACCOUNT TITLES Cash Accounts Receivable Merchandise Inventory Supplies Equipment Accumulated Depreciation - Equipment Accounts Payable Wages Payable Note Payable Capital Drawing Sales Sales Returns Sales Discounts Cost of Merchandise Sold Salaries Expense Supplies Expense Depreciation Expense Misc. Expense Freight Expense 3750 1501 1800 1000 2100 2100 2100

Answer 1

1) The closing entries are shown as follows:- (Amounts in $)

No.	Account Titles and Explanations	Debit	Credit
1	Sales	3,750
	Income Summary		3,750
	(To close the income account)
2	Income Summary	4,346
	Sales Returns		150
	Sales Discounts		50
	Cost of Merchandise Sold		1,900
	Salaries Expense		2,100
	Depreciation Expense		84
	Misc. Expense		12
	Freight Expense		50
	(To close the expenses account)
3	Capital (4,346-3,750)	596
	Income Summary		596
	(To close the income summary account)

2) The posting of closing entries to Ledger is shown as follows:- (Amounts in $)

Capital					Sales
Account Titles	Debit	Credit	Balance		Account Titles	Debit	Credit	Balance
Adjusted Balance			9,225		Adjusted Balance			3,750
Income Summary	596		8,629		Income Summary	3,750		0
Sales Returns					Sales Discounts
Account Titles	Debit	Credit	Balance		Account Titles	Debit	Credit	Balance
Adjusted Balance			150		Adjusted Balance			50
Income Summary		150	0		Income Summary		50	0
Cost of Merchandise Sold					Salaries Expense
Account Titles	Debit	Credit	Balance		Account Titles	Debit	Credit	Balance
Adjusted Balance			1,900		Adjusted Balance			2,100
Income Summary		1,900	0		Income Summary		2,100	0
Depreciation Expense					Misc. Expense
Account Titles	Debit	Credit	Balance		Account Titles	Debit	Credit	Balance
Adjusted Balance			84		Adjusted Balance			12
Income Summary		84	0		Income Summary		12	0
Freight Expense					Income Summary
Account Titles	Debit	Credit	Balance		Account Titles	Debit	Credit	Balance
Adjusted Balance			50		Sales		3,750
Income Summary		50	0		Sales Returns	150
					Sales Discounts	50
					Cost of merchandise sold	1,900
					Salaries Expense	2,100
					Depreciation Expense	84
					Misc. Expense	12
					Freight Expense	50
					Capital		596	0