Question

Note: Use a negative sign with your accumulated depreciation answer. Beneish Corporation Balance Sheet December 31 Assets Liabilities 0 Accounts receivable 0 0 Equipment gross 0 Total liabilities 0 Accumulated depreciation Common stock 0 Equipment net 0 . 0 Total assets Total liabilities and equity s 0 (b) Prepare journal entries to close Beneish's temporary accounts. GENERAL JOURNAL Ref. Description Debit Credit 0 0 0 To close revenue account. 12) 0 0 0 0 To close rent expense account. (3) . 0 0 0 0 To close salaries expense account. 0 0 . 0 0 To close depreciation expense account. . 15) 0 0 0 0 To close dividend account. (C)Set up T-accounts for each account and post the closing entries. Note: Only those ledger accounts affected by closing process are shown here. • Enter beginning balances in the appropriate answer box. • Enter transactions in the T-accounts in the order they appear, using first available answer box on the appropriate side of the T-account. • Compute the ending balances. Retained Earnings Service Fees Earned Rent Expense 0 Beg Bal Beg Bal O End Bal End Bal 0 Beg Bal 0 0 0 0 0 0 0 0 0 0 End Bal. Salaries Expense Dividends Depreciation Expense 0 0 0 Beg Bal End Bal. Beg Bal End Bal Beg Ba End Bal 0 0 0 0 O

Answer 1

BENEISH CORPORATION Income Statement For the year ended Decemebr 31 $ 142000 Revenue : Service Fees Earned Expense : Rent Expense Salaries Expense Depreciation expense Total Expense 36000 74200 14000 $ 124200 Net Income $ 17800

BENEISH CORPORATION Statement of Stockholder's Equity For the year ended Decemebr 31 Common Stock Retained Earning Total Stockholder's equity Balance at December 31, Beginning $ 86000 $ 41200 $ 127200 Add : Net Income 17800 17800 Less : Dividend - 16000 - 16000 Retained Earning December 31,2021 $ 86000 $ 43000 $ 129000

Amount (S) 20000 BENEISH CORPORATION Balancesheet For the year ended Decemebr 31 Assets Amount (S) Liabilities and Equity Current assets Liabilities Cash 8000 Notes Payable Account Receivable 13000 Non current assets Equipment 156000 Stockholders Equity Less : Accumulated Depreciation - Equipment -28000 Common Stock Retained Earning Total Assets 149000 Total liabilities and stockholders' equity 86000 43000 149000

b No. 1 Credit (S) Debit (S) 142000 General Journal Service fees earned Income summary (To close revenue account) 142000 2 36000 Income summary Rent expense (To close rent expense account) 36000 3 74200 Income summary Salaries expense (To close salaries expense account) 74200 4 14000 Income summary Depreciation expense (To close depreciation expense account) 14000 5 16000 Retained Earning Dividend (To close dividend account) 16000 6 17800 Income summary Retained Earning (To close income summary) 17800

с Service Fees Earned Income Summary 142000 142000 Beg Bal. Dividend Retained Earning 16000 41200 Beg Bal. 17800Income Summary 43000 End Bal. o End Bal. Rent Expense 36000 36000 Income Summary Salaries Expense 74200 74200 Income Summary Beg Bal. Beg Bal. End Bal. 0 End Bal. 0 Depreciation expense 14000 14000 Income Summary Dividend 16000 16000 Retained earning Beg Bal. Beg Bal. End Bal. 0 End Bal. 0

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