Question

Mira Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at October 31, the end of the fiscal year, the following balances were taken from the ledger of Mira Services Co.:

Bonnie Mira, Capital	$900,000
Bonnie Mira, Drawing	18,000
Fees Earned	525,400
Wages Expense	481,000
Rent Expense	69,500
Supplies Expense	11,400
Miscellaneous Expense	14,800

Journalize the four entries required to close the accounts. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS

Mira Services Co.

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Prepaid Rent
14	Supplies

	LIABILITIES
21	Accounts Payable
22	Wages Payable
23	Unearned Fees

	EQUITY
31	Bonnie Mira, Capital
32	Bonnie Mira, Drawing
33	Income Summary

	REVENUE
41	Fees Earned

	EXPENSES
51	Wages Expense
52	Rent Expense
53	Supplies Expense
54	Miscellaneous Expense

Journal

Journalize the four entries required to close the accounts. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 11

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1		Closing Entries
2
3
4
5
6
7
8
9
10
11
12

Answer 1

Closing entry :

Date	accounts & explanation	debit	credit
	Fees earned	525400
	Income summary		525400
	(To close revenue account)
	Income summary	576700
	Wages expense		481000
	Rent expense		69500
	Supplies Expense		11400
	Miscellaneous Expense		14800
	(TO close expense account)
	Bonnie Mira, Capital	51300
	Income summary		51300
	(To close income summary account)
	Bonnie Mira, Capital	18000
	Bonnie Mira, Withdrawal		18000
	(To close withdrawal account)