Ask Question
28 March, 12:01

The company's adjusted trial balance as follows includes the following accounts balances:

Cash, $15,000;

Equipment, $85,000;

Accumulated Depreciation, $25,000;

Accounts Payable, $10,000;

Retained earnings, $63,500;

Dividends, $2,000;

Sales, $56,000;

Sales Returns and Allowances, $3,000;

Sales Discounts, $1,500;

Depreciation Expense, $25,000; and Salaries Expense, $23,000.

All accounts have normal balances.

Required:

a. Prepare closing entry #1.

+5
Answers (1)
  1. 28 March, 14:15
    0
    Expense & revenue summary a/c (credit balance) = $3500

    Explanation:

    1. Dr Expense & revenue summary 52500

    Cr Sales discount 1500

    Cr Sales return & allowance 3000

    Cr Depreciation expense 25000

    Cr Salaries expense 23000

    (Close expenses to expense & revenue summary a/c)

    2. Dr Sales 56000

    Cr Expense & revenue summary 56000

    (Close sales to expense & revenue summary a/c)

    3. Dr Expense & revenue summary a/c 3500

    Cr Retained earning a/c 3500

    (To close expense & revenue summary a/c)

    4. Dr Retained earning 2000

    Cr Expense & revenue summary 2000

    (Close dividend to expense & revenue summary a/c) d
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers