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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 31
Posting closing entries directly to T-accounts
It is December 31 and time for your business to close the books. The following balances appear on the books of Sarah Simon Enterprises:
a. Dividends, $8,500.
b. Service revenue, $23,700.
c. Expense account balances: Salary, $6,100; Rent, $4,000; Advertising, $3,300.
Requirements
1. Set up each T-account given and insert its adjusted balance as given (denote as Bal ) at December 31. Also set up a T-account for Retained earnings, $26,100, and for Income summary.
2. Post the closing entries to the accounts, denoting posted amounts as Clo.
3. Compute the ending balance of Retained earnings.
It is December 31 and time for your business to close the books. The following balances appear on the books of Sarah Simon Enterprises:
a. Dividends, $8,500.
b. Service revenue, $23,700.
c. Expense account balances: Salary, $6,100; Rent, $4,000; Advertising, $3,300.
Requirements
1. Set up each T-account given and insert its adjusted balance as given (denote as Bal ) at December 31. Also set up a T-account for Retained earnings, $26,100, and for Income summary.
2. Post the closing entries to the accounts, denoting posted amounts as Clo.
3. Compute the ending balance of Retained earnings.
Explanation
Verified
Verified
Ledger Accounts
Closing entries ...
Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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