Question

E4.11 (LO 2), AP Selected accounts for Tamora’s Salon are presented here. All June 30 postings are from closing entries.

Salaries and Wages Expense
6/10 3,200
6/28 5,600
Bal. 8,800 6/30 8,800
Supplies Expense
6/12 600
6/24 700
Bal. 1,300 6/30 1,300
Service Revenue
6/15 9,700
6/24 8,400
6/30 18,100 Bal. 18,100
Rent Expense
6/1 3,000
Bal. 3,000 6/30 3,000
Owner’s Capital
6/30 2,500 6/1 12,000
6/30 5,000
Bal. 14,500
Owner’s Drawings
6/13 1,000
6/25 1,500
Bal. 2,500 6/30 2,500
Instructions

Prepare the closing entries that were made.
Post the closing entries to Income Summary.
Prepare correcting entries.

Answer 1

1. The preparation of the the closing journal entries made is as follows:

Closing Journal Entries:

Debit Income Summary $8,800

Credit Salaries and Wages Expense $8,800

Debit Income Summary $1,300

Credit Supplies Expense $1,300

Debit Income Summary $3,000

Credit Rent Expense $3,000

Debit Service Revenue $18,100

Credit Income Summary $18,100

2. The posting of the closing entries to the Income Summary is as follows:

Income Summary:

Service Revenue                                $18,100

Salaries & Wages Expense $8,800

Supplies Expense                   1,300

Rent Expense                         3,000

Total Expenses                                  $13,100

Operating income                            $5,000

3. The preparation of the the correcting entries is as follows:

Debit Owner’s Drawings $2,500

Credit Owner’s Capital $2,500

What are closing entries?

Closing entries are the journal entries made at the end of a financial period to close the revenue and expenses (temporary accounts) to the income summary, income summary to the retained earnings account, and dividends to retained earnings.

Learn more about preparing closing entries at https://brainly.com/question/13408214