Identify which of the following accounts should be closed with a debit or a credit at the end of the fiscal year.

Chapter 4:  Homework

 

1. The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the work sheet. Indicate whether each balance should flow to (A) the income statement, (B) the statement of owner’s equity, or (C) the balance sheet.

 

  (1) Salaries Payable      (7) Felipe Ramos, Drawing
  (2) Fees Earned      (8) Equipment
  (3) Accounts Payable      (9) Accounts Receivable
  (4) Supplies    (10) Accumulated Depreciation
  (5) Supplies Expense    (11) Salary Expense
  (6) Unearned Rent    (12) Depreciation Expense

 

2. Indicate whether each of the following would be reported in the section of financial statements identified as (A) Current Asset, (B) Property, Plant, and Equipment (LT Asset), (C) Current Liability, (D) Revenue, or       (E) Expense:

(1) Truck
(2) Accumulated Depreciation
(3) Wage Expense
(4) Fees Earned Revenue
(5) Wages Payable
(6) Prepaid Insurance
(7) Office Supplies
(8) Insurance Expense
(9) Unearned Rent Revenue

 

 

3. Identify which of the following accounts should be closed with a debit or a credit at the end of the fiscal year.  If it is not closed, the mark as n/a.

1.  _________   Depreciation Expense—Equipment

2.  _________   Accounts Receivable

3.  _________   Supplies

4.  _________   Supplies Expense

5.  _________   Prepaid Insurance

6.  _________   Insurance Expense

7.  _________   Equipment

8.  _________   Rent Revenue

9.  _________   Unearned Rent Revenue

10.  _________   Salary Payable

4.  Which of the following accounts will usually appear in the post-closing trial balance.                                                (hint: only real/permanent accounts will appear)

 

a.  __________  Supplies

b.  __________  Supplies Expense

c.  __________  Equipment

d.  __________  Unearned Rent Revenue

e.  __________  Wage Payable

f.  __________  Wage Expense

g.  __________  Sales Revenue

h.  __________  Insurance Expense

 

 

5.  Which of the following accounts will usually appear in the post-closing trial balance.                                                (hint: only real/permanent accounts will appear)

 

a.  __________  Sales Revenue

b.  __________  Note Payable

c.  __________  Land

d.  __________  Unearned Sales Revenue

e.  __________  Prepaid Insurance

f.  __________   Insurance Expense

g.  __________  Wage Expanse

h.  __________  Wage Payable

 

 

  1. After the accounts have been adjusted at January 31, the end of the year, the following balances are taken from the ledger of Harrison’s Dog Walking Service Company:
Harrison Taylor, Capital $349,000
Harrison Taylor, Drawing 6,000
Fees Earned 124,600
Wages Expense 29,000
Rent Expense 43,000
Supplies Expense 7,300
Miscellaneous Expense 5,700

Journalize the two entries required to close the accounts.

  1. On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Banes Domino’s Company, journalize the two closing entries.
Cash   30,000
Accounts Receivable 45,200
Supplies 5,000
Equipment 169,900
Accumulated Depreciation 32,000
Accounts Payable 12,500
Jack Banes, Capital 71,600
Jack Banes, Drawing 47,000
Fees Earned 510,000
Salary Expense 244,500
Rent Expense 48,000
Depreciation Expense 25,000
Supplies Expense 9,500
Miscellaneous Expense       2,000                                 ​
626,100 626,100

 

  1. The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to perform the two closing entries for Ladonna Douglas Company.
Cash 34,750
Accounts Receivable 9,750
Office Supplies 2,525
Store Supplies 4,785
Machinery 10,750
Accumulated Depreciation 2,150
Accounts Payable 14,300
Notes Payable 11,500
Ladonna Douglas, Capital 53,725
Ladonna Douglas, Drawing 13,250
Service Revenue 41,500
Wages Expense 37,425
Rent Expense 3,000
Advertising Expense 2,750
Office Supplies Expense 1,465
Store Supplies Expense 2,150
Depreciation Expense         575                                     ​
123,175 123,175

 

  1. The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Erik Martin Company. Use these adjusted values to journalize the two closing entries for Erik Martin Company.

Cash 24,750
Accounts Receivable 5,750
Office Supplies 3,525
Store Supplies 4,785
Machinery 9,750
Accumulated Depreciation 2,150
Accounts Payable 3,550
Notes Payable 7,500
Erik Martin, Capital 19,725
Erik Martin, Drawing 6,250
Service Revenue 36,500
Wages Expense 6,425
Office Supplies Expense 1,465
Store Supplies Expense 5,150
Depreciation Expense    1,575                                                  ​
69,425 69,425