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    Additional Example

    Uploaded by

    Sherif Khalifa

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Additional Example

    Uploaded by

    Sherif Khalifa
    13 views1 page

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views1 page

    Additional Example

    Uploaded by

    Sherif Khalifa

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Additional Example

    Closing temporary accounts in the case of net loss

    It is December 31 and time for your business to close the books. The following balances
    appear on the books of Sarah Simon Enterprises:

    1. Drawing, $8,500.
    2. Service revenue, $12,700.
    3. Expense account balances: Salary, $6,100; Rent, $4,000; Advertising, $3,300.

    Requirements

    1. Journalize closing entries.


    2. Post the closing entries to the accounts.
    3. Compute the ending balance of Simon, capital (beginning balance 26,100).

    Service Revenue 12,700


    Income summary 12,700
    Income summary 13,400
    Salaries expense 6,100
    Rent expense 4,000
    Advertising expense 3,300
    Simon, capital 700
    Income summary 700
    Simon, capital 8,500
    Withdrawals 8,500

    Service Revenue
    12,700 12,700 Salaries expense
    0 End. 6,100 6,100
    End. 0
    Income Summary
    Rent expense
    13,400 12,700
    4,000 4,000
    700
    End. 0
    700
    0 End. Advertising expense
    3,300 3,300
    Simon, capital End. 0
    700 26,100 Beg.
    8,500
    16,900 End.

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