Question

Roscoe has attempted to prepare the closing entries for Chandler Company on this panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect.

Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 on the Journal panel.

PAGE 25

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
2	Dec. 31	Roscoe Chandler, Capital		483,600.00				↓
3		Fees Earned			185,600.00			↑
4		Rent Revenue			92,000.00			↑
5		Interest Revenue			17,200.00			↑
6		Salaries Expense			71,000.00			↑
7		Selling Expense			37,600.00			↑
8		Income Taxes Expense			15,000.00			↑
9		Depreciation Expense-Equipment			47,200.00			↑
10		Insurance Expense			17,000.00			↑
11		Miscellaneous Expense			1,000.00			↑
12	31	Roscoe Chandler, Capital		5,000.00				↓
13		Roscoe Chandler, Drawing			5,000.00			↑

Journal

Roscoe has attempted to prepare the closing entries for Chandler Company on the Roscoe’s Journal panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Refer to the Chart of Accounts for exact wording of account titles.

Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 in the following journal.

Please Make the journal entries

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
2
3
4
5
6
7
8
9
10
11
12
13

Post-Closing Trial Balance

The post-closing trial balance shows all the permanent accounts with their updated values after the temporary accounts have been reduced to zero balance for the next accounting cycle. Also, the post-closing trial balance is meant to ensure that debits equal credits post-close.

Roscoe is very happy with your work on the closing entries for Chandler Company, and asks if you would prepare a post-closing trial balance for the company.

Chandler Company

POST-CLOSING TRIAL BALANCE

December 31, 2018

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Prepaid Insurance
4	Equipment
5	Accumulated Depreciation-Equipment
6	Accounts Payable
7	Salaries Payable
8	Income Taxes Payable
9	Roscoe Chandler, Capital
10	Totals

Answer 1

Correct Closing Entries:

Date	Account title and explanation	Post.Ref.	Debit	Credit	Assets	Liabilities	Equity
Dec. 31	Fees Earned		185,600.00				↓
	Rent Revenue		92,000.00				↓
	Interest Revenue		17,200.00				↓
	Salaries Expense			71,000.00			↑
	Selling Expense			37,600.00			↑
	Income Taxes Expense			15,000.00			↑
	Depreciation Expense-Equipment			47,200.00			↑
	Insurance Expense			17,000.00			↑
	Miscellaneous Expense			1,000.00			↑
	Roscoe Chandler, Capital			106,000.00			↑
	[To close revenues and expenses accounts]
Dec. 31	Roscoe Chandler, Capital		5,000.00				↓
	Roscoe Chandler, Drawing			5,000.00			↑
	[To close drawings account]