Question

Closing Entries with Net Loss

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

Violet Lozano, Capital	$950,000
Violet Lozano, Drawing	11,000
Fees Earned	698,900
Wages Expense	472,000
Rent Expense	73,000
Supplies Expense	11,800
Miscellaneous Expense	14,300

Journalize the two entries required to close the accounts. If an amount box does not require an entry, leave it blank.

Jul. 31
Jul. 31

Post-Closing Trial Balance

An accountant prepared the following post-closing trial balance:

La Casa Services Co. Post-Closing Trial Balance March 31, 20Y6
	Debit Balances		Credit Balances
Cash	12,700
Accounts Receivable	28,190
Supplies			1,780
Equipment			125,600
Accumulated Depreciation	41,910
Accounts Payable	15,240
Salaries Payable			1,400
Unearned Rent	5,720
Sonya Flynn, Capital	104,000
	207,760		128,780

Prepare a corrected post-closing trial balance. Assume that all accounts have normal balances and that the amounts shown are correct. If an amount box does not require an entry, leave it blank.

La Casa Services Co.
Post-Closing Trial Balance
March 31, 20Y6
	Debit Balances	Credit Balances
Cash
Accounts Receivable
Supplies
Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Unearned Rent
Sonya Flynn, Capital
Totals

Answer 1