Question

Cash 11 1,500

Accounts Receivable 12 2,000

Interest Receivable 13 100

Prepaid Insurance 14 1,600

Notes Receivable (long-term) 16 2,800

Equipment 18 15,000

Accumulated Depreciation 19 3,000

Accounts Payable 21 2,400

Accrued Expenses Payable 22 3,920

Income Taxes Payable 23 2,700

Unearned Rent Fees 24 500

Robert Evans, Capital 31 7,700

Robert Evans, Drawing 32 2,000

Rent Fees Earned 41 37,000

Furniture Rental Revenue 42 1,200

Interest Revenue 43 100

Wages Expense 51 19,000

Depreciation Expense 52 1,800

Utilities Expense 53 320

Insurance Expense 54 700

Maintenance Expense 55 9,000

Income Tax Expense 56 2,700

58,520 58,520

Journalize the entry required to close the revenue and expense accounts at the end of the period. If an amount box does not require an entry, leave it blank.

Dec. 31

Answer 1

Date	Particuler	Debit	Credit
Dec 31	Robert Evans Capital dr (Working note)	$1220
	To Income summary		$ 1220

Working note - Computation income/ loss

	Amount	Amount
Revenue
Rent Fees Earned	$31000
Furniture Rental Revenue	$1,200
Interest Revenue	$100
Total revenue		$32300
Expenses
Wages	$19000
Depreciation	$1800
Utilities	$320
Insurance	$700
Maintenance	$9000
Income Tax	$2700
Total expenses		$33,520
Net Income / (Loss) Total revenue - Total expenses $32,300 - $33,2501		($1220)