journalize the closing entries and post to the accounts that you opened 559641

Journalizing adjusting and closing entries

The unadjusted trial balance and adjustment data of Elias Real Estate Appraisal Company at June 30, 2012, follow:

ELIAS REAL ESTATE APPRAISAL COMPANY Unadjusted Trial Balance June 30, 2012

Account title

Debit

Credit

Cash

$ 4,900

Accounts receivable

4,000

Supplies

3,000

Prepaid insurance

2,200

Building

74,400

Accumulated depreciation

$ 18,800

Land

13,600

Accounts payable

19,500

Interest payable

8,800

Salary payable

1,300

Elias, capital

30,800

Elias, drawing

27,900

Service revenue

97,900

Salary expense

32,400

Depreciation expense

0

Insurance expense

4,200

Utilities expense

4,000

Supplies expense

6,500

Total

$ 177,100

$ 177,100

Adjustment data at June 30, 2012:

  1. Prepaid insurance expired, $300.
  2. Accrued service revenue, $1,300.
  3. Accrued salary expense, $900.
  4. Depreciation for the year, $8,500.
  5. Supplies used during the year, $600.

Requirements

1. Open T accounts for Elias, capital and all the accounts that follow on the trial balance. Insert their unadjusted balances. Also open a T account for Income summary, which has a zero balance.

2. Journalize the adjusting entries and post to the accounts that you opened. Show the balance of each revenue account and each expense account.

3. Journalize the closing entries and post to the accounts that you opened. Draw double underlines under each account balance that you close to zero.

4. Compute the ending balance of Elias, capital.

Submit a Comment