Question

On the basis of the following information taken from the Adjusted Trial Balance columns of the work sheet for the month ended September 30, journalize the closing entries for Perez Roofing Company.
Cash 22,500
Accounts Receivable 3,575
Office Supplies 2,850
Repair Parts 3,785
Machinery 17,750
Accumulated Depreciation 3,250
Accounts Payable 1,150
Notes Payable 6,500
Common Stock 1,500
Retained Earnings 1,000
Dividends 1,750
Service Revenue 47,200
Wages Expense 4,840
Office Supplies Expense 1,275
Repair Parts Expense 925
Depreciation Expense 1,350
60,600 60,600

Answer 1

Answer:

                                   Closing entry

Date         Account and explanation         Debit         Credit

Sep 30     Service revenue                        $47,200

                Income summary                                         $47,200

                (To revenue closed)

Sep 30     Income summary                        $8,390  

                Wages expense                                             $4,840

                Office supplies expense                                $1,275

                Repairs parts expense                                   $925

                Depreciation expense                                   $1,350

                (To close expense account)  

Sep 30     Income summary                          $38,810

                 Retained earnings                                        $38,810

                 (To close income summary)

Sep 30      Retained earnings                     $1,750  

                  Dividend                                                       $1,750

                  (To close dividend)