the trial balance and adjustments columns of the worksheet of budget business system 559668

Journalizing closing entries

The trial balance and adjustments columns of the worksheet of Budget Business Systems at March 31, 2012, follow:

BUDGET BUSINESS SYSTEMS Worksheet Year Ended March 31,2012

Trial Balance

Adjustments

Account

Debit

Credit

Debit

Credit

Cash

$2,400

Accounts receivable

8,900

(a)$2,500

Inventory

36,500

(b)$4,800

Supplies

13,700

(c) 7,300

Equipment

42,500

Accumulated depreciation

$11,600

(d)2,300

Accounts payable

9,200

Salary payable

(e)1,000

Note payable, long term

7,900

Bitzes, capital

34,000

Bitzes, drawing

43,000

Sales revenue

232,000

(a)2,500

Sales discounts

2,500

Cost of goods sold

111,500

(b) 4,800

Selling expense

21,100

(c) 5,100

(e) 1,000

General expense

10,300

(c) 2,200

(d) 2,300

Interest expense

2,300

Total

$294,700

$294,700

$ 17,900

$ 17,900

Requirements

1. Compute the adjusted balance for each account that must be closed.

2. Journalize the required closing entries at March 31, 2012.

3. How much was Budget’s net income or net loss?

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