Question

Quiz: Solid Footing Chapters 5 and 6 Name: The following is Green Cos Pre-Closing Trial Balance as of December 31, 2017 Green's accounting period is a month, thus the balances in the temporary accounts are for the month of December 2017. Note that the accounts are not listed in their normal sequence rather they are listed in alphabetical sequence Debi Credit 26,000 Account Name Accounts Payable Accounts Receivable 28.850 10.000 12,500 68,000 73,000 150 500 Common Stock Cost of Goods Sold Equipment Interest Expense Interest Payable Inventory Note Payable Retained Earnings Sales Revenue Supplies Expense Wages Expense 45,000 21.000 53,000 179.000 7.000 60,000 292 000 Total 292.000 In the General Journal below. enter the journal entry that should be made to close the Revenue account(s). [ a description below the journal entry is not required) Account Debit Credit In the General Journal below, enter the journal entry that should be made to close the Expense accounts. [ a description below the journal entry is not required] Account Debit Credit 3. Based on Green's account balances, the amount of Net Income that would be shown on the income Statement for December 2017 would be: $_ 4. Based on Green's account balances, the Retained Earnings amount that would be shown on the Balance Sheet as of December 31, 2017 would be: $

Answer 1

1 Journal Entry to close Revenue Alc. 0 sales Income Revenue Summary $179000 $ 179000 To close Expenses Cost of goods sold wages Expense Supplies Expense Interest Expense a $ 68000 or $60000 oo $7000 t $150 Credit) (creolit) (Credit) (Credit) I ncome Summary $135150. 3 Net Income = 8179000 - 135150 Loud shoo z $ 43850 9 Retained earnings opening Balance $53000 (+) current year In come Closing Balance as $96850 on 31/12/2017 u 3850