Question

E4.11 (LO 2), AP Selected accounts for Heather's Salon are presented here. All June 30 postings are from closing entries. Salaries and Wages Expense 6/10 3,200 6/28 5,600 Bal. 8,800 6/30 8,800 Supplies Expense 6/12 600 6/24 Bal. 700 1,300 6/30 1,300 Service Revenue 6/15 6/24 18,100 Bal. 9,700 8,400 18,100 6/30 6/1 Bal. Rent Expense 3,000 3,000 6/30 3,000 6/30 Retained Earnings 2,500 6/1 12,000 6/30 5,000 Bal. 14,500 6/13 6/25 Bal. Dividends 1,000 1,500 2,500 6/30 2,500 Instructions a. Prepare the closing entries that were made. b. Post the closing entries to Income Summary.

Answer 1

Date	Accounting titles and Explanations	Debit	Credit
June 30	Service revenue	$ 18,100
	Retained earnings		$ 18,100
	(To Close revenue account )
June 30	Income summary	$ 13,100
	Salaries and wages expense		$ 8,800
	Supplies expense		$ 1,300
	Rent expense		$ 3,000
	(To Close Expense account )
June 30	Income summary ( $ 18,100 (-) $ 13,100 )	$ 5,000
	Retained earnings		$ 5,000
	(To Close Net Income / Loss )
June 30	Retained earnings	$ 2,500
	Dividends		$ 2,500
	(To close dividends to capital.)
(b)
	Income Summary
June 30	$ 13,100	June 30	$ 18,100
June 30	$ 5,000
	$ 18,100		$ 18,100