journalize the closing entries and post to the accounts that you opened draw double 559646

Journalizing adjusting and closing entries

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

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

Account title

Debit

Cash

$ 4,600

Accounts receivable

3,500

Supplies

3,000

Prepaid insurance

2,100

Building

74,700

Accumulated depreciation

$ 18,600

Land

14,000

Accounts payable

18,900

Interest payable

8,000

Salary payable

600

Smith, capital

33,000

Smith, drawing

27,000

Service revenue

97,500

Salary expense

32,100

Depreciation expense

0

Insurance expense

5,100

Utilities expense

3,600

Supplies expense

6,900

Total

$ 176,600

$ 176,600

Adjustment data at June 30, 2012:

  1. Prepaid insurance expired, $400.
  2. Accrued service revenue, $1,100.
  3. Accrued salary expense, $700.
  4. Depreciation for the year, $8,500.
  5. Supplies used during the year, $100.

Requirements

1. Open T accounts for Smith, 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 Smith, capital.

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