Question

Yang's Sport Marketing adjusted trial balance on December 31, 2016, appears in the work sheet as follows:

  

No.		Account	Debit			Credit
101		Cash	$	28,800
124		Shop supplies		2,200
128		Prepaid insurance		5,000
167		Equipment		92,000
168		Accumulated depreciation, equipment				$	8,300
201		Accounts payable					19,800
210		Wages payable					9,660
301		Mike Yang, capital					148,000
302		Mike Yang, withdrawals		40,000
401		Repair fees earned					164,830
612		Depreciation expense, equipment		9,300
623		Wages expense		105,300
637		Insurance expense		2,300
640		Rent expense		56,350
650		Office supplies expense		5,600
690		Utilities expense		3,740
		Totals	$	350,590		$	350,590

  

Required

1.	Prepare closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Prepare closing entries :

Date	accounts & explanation	debit	credit
	Repair fees earned	164830
	Income summary a/c		164830
	(To record close of revenue account)
	Income summary a/c	182590
	Depreciation expense, equipment		9300
	Wages expenses		105300
	Insurance expense		2300
	Rent expense		56350
	Office supplies expenses		5600
	Utilities expenses		3740
	(TO record close of expenses account)
	Mike Yang, capital	17760
	Income summary account		17760
	(To record close of income summary account)
	Mike Yang, capital	40000
	Mike Yang, withdrawal		40000
	(To record close of withdrawal account)