Question

Based on the data below, close out the revenue, expense, income summary, and drawing accounts.

Service Fees = $100,000

Rent Expense = $10,000

Wage Expense = $20,000

Utilities Expense = $12,000

Supplies Expense = $1000

Insurance Expense = $1000

Depreciation Expense = $4000

Drawing = $1000

Answer 1

Solution:

a)Revenue Account

Particulars	Amount(Dr)	Particulars	Amount(Cr)
To Service fees	$100,000
		By Profit & Loss	$100,000
Total	$100,000	Total	$100,000

b)Expense Account

Particulars	Amount(Dr)	Particulars	Amount(Cr)
To		By Rent Expense	$10,000
		By Wage Expense	$20,000
		By Utilities Expense	$12,000
		By Supplies Expense	$1000
		By Insurance Expense	$1000
		By Depreciation Expense	$4000
To Profit & Loss	$48,000
Total	$48,000	Total	$48,000

c)Income summary

Particulars	Amount
Total Revenue(service Fees)	$100,000
Less:Total Expenses	$48,000
Net Income	$52,000

d)Drawing Account

Particulars	Amount(Dr)	Particulars	Amount(Cr)
To Cash a/c	$1,000	By Capital a/c	$1,000
Total	$1,000	Total	$1,000