Question

Dorsey Company’s partial worksheet for the month ended March 31, 2019, is shown below. Open the owner’s capital account (account number 301) in the general ledger and record the March 1, 2019, balance of $35,500 shown on the worksheet.

	INCOME STATEMENT				BALANCE SHEET
ACCOUNT NAME	DEBIT		CREDIT		DEBIT		CREDIT
Cash					9,200
Accounts Receivable					12,400
Supplies					4,850
Equipment					33,500
Accum. Depr. - Equip.							11,400
Accounts Payable							10,200
N. Dorsey, Capital							35,500
N. Dorsey, Drawing					3,700
Fees Income			25,800
Salaries Expense	14,100
Rent Expense	1,750
Supplies Expense	1,050
Depr. Exp. −Equip.	2,350
Totals	19,250		25,800		63,650		57,100
Net Income	6,550						6,550
	25,800		25,800		63,650		63,650

Prepare a journal entries for the Dorsey Company’s on March 31, 2019. Post the closing entries to the owner’s capital account. Prepare a postclosing trial balance.

• Record entry to transfer fees income to income summary.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Mar 31, 2019

• General Ledger
• Trial Balance

Post the closing entries to the owner’s capital account.

General Ledger
N. Dorsey, Capital		Account No: 301
Date	Debit	Credit	Balance
Mar 01, 2019
Mar 31, 2019
Mar 31, 2019

• Trial Balance

Prepare a postclosing trial balance.

DORSEY COMPANY
Postclosing Trial Balance
March 31, 2019
Account Name	Debit	Credit
Totals

Answer 1

• Closing Entries

Accounts title	Debit	Credit
Fees income	$25,800
Income Summary		$25,800
(to transfer fees income)
Income Summary	$19,250
Salaries expense		$14,100
Rent Expense		$1,750
Supplies expense		$1,050
Depreciation expense—Equipment		$2,350
(to transfer expenses)
Income Summary	$6,550
N Dorsey Capital		$6,550
(to transfer Net Income)
N Dorsey Capital	$3,700
N Dorsey Drawings		$3,700
(to transfer drawings)

• Account

General Ledger
N. Dorsey, Capital		Account No: 301
Date	Debit	Credit	Balance
Mar 01, 2019			$35,500
Mar 31, 2019		$6,550	$42,050
Mar 31, 2019	$3,700		$38,350

• Post Closing TRrial balance

Postclosing Trial Balance
March 31, 2019
Account Name	Debit	Credit
Cash	$9,200
Accounts receivable	$12,400
Supplies	$4,850
Equipment	$33,500
Accumulated depreciation—Equipment		$11,400
Accounts payable		$10,200
N Dorsey Capital		$38,350
N Dorsey Drawings	$0
Fees income		$0
Salaries expense	$0
rent Expense	$0
Supplies expense	$0
Depr Expe Equipment	$0
Totals	$59,950	$59,950