Question

The ledger accounts of I-Cloud Internet Company appear as follows on March 31, 2016: ACCOUNT NO. ACCOUNT BALANCE 101 Cash $ 80,000 111 Accounts Receivable 58,820 121 Supplies 10,600 131 Prepaid Insurance 25,000 141 Equipment 118,000 142 Accumulated Depreciation—Equipment 41,320 202 Accounts Payable 13,000 301 Lee Retha Hale, Capital 130,000 302 Lee Retha Hale, Drawing 13,000 401 Fees Income 374,460 510 Depreciation Expense—Equipment 21,160 511 Insurance Expense 11,400 514 Rent Expense 33,000 517 Salaries Expense 166,000 518 Supplies Expense 5,600 519 Telephone Expense 6,800 523 Utilities Expense 9,400 All accounts have normal balances. Prepare the closing entries. Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.

Answer 1

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