After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Nuclear Landscaping Co.: Retained Earnings $643,600 Dividends 10,500 Fees Earned 356,500 Wages Expense 283,100 Rent Expense 56,000 Supplies Expense 11,500 Miscellaneous Expense 13,000
Journalize the four entries required to close the accounts. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Nuclear Landscaping Co. General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Rent
15 Land
LIABILITIES
21 Accounts Payable
22 Unearned Fees
23 Wages Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
34 Income Summary
REVENUE
41 Fees Earned
EXPENSES
51 Wages Expense
52 Rent Expense
53 Supplies Expense
59 Miscellaneous Expense
Closing Entries:
Date | Account title and explanation | Debit | Credit |
Apr 30 | Fees Earned | $356,500 | |
Income summary | $356,500 | ||
[To close revenue accounts] | |||
Apr 30 | Income summary | $363,600 | |
Wages expense | $283,100 | ||
Rent expense | $56,000 | ||
Supplies expense | $11,500 | ||
Miscellaneous expense | $13,000 | ||
[To close expeses accounts] | |||
Apr 30 | Retained earnings | $7,100 | |
Income summary [$363,600 - $356,500] | $7,100 | ||
[To close net income] | |||
Apr 30 | Retained earnings | $10,500 | |
Dividends | $10,500 | ||
[To close dividend accounts] |
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