Question

Problem 4-4A Closing entries LO2, 3, 4

MY Autobody’s adjusted trial balance on December 31, 2020, appears in the work sheet as follows:  

No.	Account		Debit			Credit
101	Cash	$	28,700
124	Shop supplies		2,150
128	Prepaid insurance		4,900
167	Equipment		91,500
168	Accumulated depreciation, equipment				$	8,200
201	Accounts payable					19,700
210	Wages payable					9,560
301	Mike Yang, capital					147,000
302	Mike Yang, withdrawals		39,500
401	Repair revenue					163,930
612	Depreciation expense, equipment		9,200
623	Wages expense		105,200
637	Insurance expense		2,250
640	Rent expense		55,850
650	Office supplies expense		5,500
690	Utilities expense		3,640
	Totals	$	348,390		$	348,390

Required
1. Prepare closing entries.

Answer 1

No.	Account	Dr	Cr
401	Repair revenue	163,930
	Profit and loss account (B/F)	17,710
612	Depreciation expense, equipment		9,200
623	Wages expense		105,200
637	Insurance expense		2,250
640	Rent expense		55,850
650	Office supplies expense		5,500
690	Utilities expense		3,640
	(Transfer of expenses and revenue to profit and loss account)
		Dr	Cr
301	Mike Yang, capital	17,710
	Profit and loss account (B/F)		17,710
	(Transfering balance of profit or loss account to capital account)