Question

Poncies Current Attempt in Progress Presented below is an adjusted trial balance for Shawn Company at December 31, 2022 

 

Prepare closing entries for December 31, 2022.

Answer 1

Solution

Closing Entries
Date	General Journal	Debit	Credit
31-Dec	Service revenue	$      29,000.00
	Income Summery		$    29,000.00
	(To close revenue account)
31-Dec	Income Summery	$      22,800.00
	Advertising expense		$      1,400.00
	Depreciation Expense		$      7,000.00
	Insurance Expense		$      1,600.00
	Salaries and wages expense		$    12,000.00
	Rent expense		$          800.00
	(To close expense account)
31-Dec	Income Summery	$        6,200.00
	Owner's capital		$      6,200.00
	(To close net income to capital)
31-Dec	Owner's capital	$        1,500.00
	Owner's drawings		$      1,500.00
	(To close drawings to capital)

Owner ending capital balance = $28,700