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    Comp4 1

    Uploaded by

    Kavya Gopakumar
    1) Various transactions are recorded that affect cash, accounts receivable, land, common stock, retained earnings, and various expense and revenue accounts. 2) Closing entries are made that move various expenses and revenues to an income statement account. 3) The income statement account is closed out by moving the net income/loss amount to retained earnings. 4) A dividend is declared and paid out, reducing retained earnings.

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    Comp4 1

    Uploaded by

    Kavya Gopakumar
    62 views3 pages
    1) Various transactions are recorded that affect cash, accounts receivable, land, common stock, retained earnings, and various expense and revenue accounts. 2) Closing entries are made that move various expenses and revenues to an income statement account. 3) The income statement account is closed out by moving the net income/loss amount to retained earnings. 4) A dividend is declared and paid out, reducing retained earnings.

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    COMP4-1

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    1) Various transactions are recorded that affect cash, accounts receivable, land, common stock, retained earnings, and various expense and revenue accounts. 2) Closing entries are made that move various expenses and revenues to an income statement account. 3) The income statement account is closed out by moving the net income/loss amount to retained earnings. 4) A dividend is declared and paid out, reducing retained earnings.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    62 views3 pages

    Comp4 1

    Uploaded by

    Kavya Gopakumar
    1) Various transactions are recorded that affect cash, accounts receivable, land, common stock, retained earnings, and various expense and revenue accounts. 2) Closing entries are made that move various expenses and revenues to an income statement account. 3) The income statement account is closed out by moving the net income/loss amount to retained earnings. 4) A dividend is declared and paid out, reducing retained earnings.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 3

    Debit Credit

    a Cash 15000
    Long term notes payable 15000
    b Land 13000
    Cash 13000
    c Cash 163000
    Accounts receivable 52000
    Service revenue 215000
    d Cash 4000
    Common Stock (4000*0.50) 2000
    Additionaal paid in capital 2000
    e Remaining expenses 114000
    Cash 94000
    Accounts Payable 20000
    f Cash 34000
    Accounts Receivable 34000
    g Other assets 15000
    Cash 15000
    h Supplies 27000
    Accounts Payable 27000
    i Accounts Payable 26000
    Cash 26000
    j No transaction
    k Dividend 25000
    Cash 25000
    l Supplies Expense 22000
    Supplies 22000
    m Depreciation expense 10000
    Accumulated Depreciation 10000
    n Interest expense 1000
    Interest payable 1000
    (15000*.08*10/12)
    o Wages expense 16000
    Wages payable 16000
    p Income tax expense 11000
    Income tax payable 11000
    CLOSING ENTRIES
    a Service revenue 215000
    Income statement 215000
    b Income statement 174000
    Remaining expenses 114000
    Supplies Expense 22000
    Depreciation expense 10000
    Interest expense 1000
    Wages expense 16000
    Income tax expense 11000
    c Income statement 41000
    Retained earnings 41000
    d Retained earnings 25000
    Dividend 25000
    Dr. Supplies A/c Cr.
    Amount Amount
    Opening Balance 13000 Supplies expense 22000
    Accounts Payable 27000 Closing Balance 18000
    40000 40000

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