Question

Okabe Company ended its fiscal year on July 31, 2017. The company’s adjusted trial balance as of the end of its fiscal year is shown below.

OKABE COMPANY Adjusted Trial Balance July 31, 2017
No.		Account Titles		Debit		Credit
101		Cash		$9,900
112		Accounts Receivable		9,200
157		Equipment		16,100
158		Accumulated Depreciation—Equip.				$7,400
201		Accounts Payable				4,900
208		Unearned Rent Revenue				1,700
301		Owner’s Capital				45,500
306		Owner’s Drawings		16,100
400		Service Revenue				65,000
429		Rent Revenue				6,400
711		Depreciation Expense		8,900
726		Salaries and Wages Expense		55,700
732		Utilities Expense		15,000
				$130,900		$130,900

Post to Owner’s Capital and Income Summary accounts. (Post entries in the order of journal entries presented in the previous part.)

Owner’s Capital				No. 301
Date	Explanation	Debit	Credit	Balance
July 31	BalanceClose Net Income/LossClose DrawingsClose RevenuesClose Expenses
July 31	Close RevenuesClose DrawingsClose ExpensesClose Net Income/LossBalance
July 31	Close ExpensesClose Net Income/LossClose DrawingsBalanceClose Revenues
Income Summary				No. 350
Date	Explanation	Debit	Credit	Balance
July 31	Close RevenuesClose DrawingsBalanceClose Net Income/LossClose Expenses
July 31	Close Net Income/LossClose DrawingsClose RevenuesClose ExpensesBalance
July 31	BalanceClose RevenuesClose ExpensesClose Net Income/LossClose Drawings

Answer 1

Journal Entry
S. No.	Account Tittle	Debit	Credit
a	Service Revenue	$65,000
	Rent Revenue	$6,400
	Income Summary		$71,400
	TO Record Closing Revenue Income Summary
b	Income Summary	$79,600
	Depreciation Expense		$8,900
	Salaries And Wages Expense		$55,700
	Utilities Expense		$15,000
	TO Record Closing Expense Account Income Summary
c	Owner'S Capital	$8,200
	Income Summary		$8,200
	TO Record Closing of Income Summary
d	Owner'S Capital	$16,100
	Owner'S Drawing		$16,100
	TO Record Closing of Dividend Account