Question

Robert Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31. Refer to the Chart of Accounts for exact wording of account titles. Robert Evans ADJUSTED TRIAL BALANCE December 31, 20-- ACCOUNT TITLE DEBIT CREDIT 1 Cash 1,500.00 2 Accounts Receivable 2,000.00 3 Interest Receivable 100.00 4 Prepaid Insurance 1,600.00 5 Notes Receivable 2,800.00 6 Equipment 15,000.00 7 Accumulated Depreciation 3,000.00 8 Accounts Payable 2,400.00 9 Accrued Expenses Payable 3,920.00 10 Income Taxes Payable 2,700.00 11 Unearned Rent Fees 500.00 12 Robert Evans, Capital 7,700.00 13 Robert Evans, Drawing 2,000.00 14 Rent Fees Earned 37,000.00 15 Furniture Rental Revenue 1,200.00 16 Interest Revenue 100.00 17 Wages Expense 19,000.00 18 Depreciation Expense 1,800.00 19 Utilities Expense 320.00 20 Insurance Expense 700.00 21 Maintenance Expense 9,000.00 22 Income Tax Expense 2,700.00 23 Totals 58,520.00 58,520.00 Required: Prepare the entry required to close the revenue and expense accounts. Prepare the closing entry required to transfer the income or loss at the end of the period. Refer to the Chart of Accounts for exact wording of account titles. The chart of account does not include income Summary under Equity accounts.

Answer 1

Closing entries:
S.no.	Accounts title and explanations				Debit $	credit $
a.	Rent fees revennue Dr.				37000
	Furniture rental revennue Dr.				1200
	Interest revenue Dr.				100
	Income Summary					38300
b.	Income Summary Dr.				33520
	wages expense					19000
	Depreciation expenses					1800
	Utilities expenses					320
	Insurance expenses					700
	Maintenance expenses					9000
	Icome tax expenses					2700
c.	Income Summary Dr.				4780
	Robert evans Capital					4780
d.	Robert Evans Capital Dr.				2000
	Robert evans Drawings					2000