The company's adjusted trial balance includes the following accounts balances: Cash, $15,000; Equipment, $85,000; AccumulatedDepreciation, $25,000; Accounts Payable, $10,000; Retained earnings, $63,500; Dividends, $2,000; Sales, $56,000; Sales Returnsand Allowances, $3,000; Sales Discounts, $1,500; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts havenormal balances.Prepare the second closing entry by selecting the account names from the pull-down menus and entering dollar amounts in the debitand credit columns.View transaction listView journal entry worksheetGeneral JournalNoDateDebitCreditNo Transaction RecordedDec. 31

Question
Asked Oct 10, 2019
1992 views
The company's adjusted trial balance includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated
Depreciation, $25,000; Accounts Payable, $10,000; Retained earnings, $63,500; Dividends, $2,000; Sales, $56,000; Sales Returns
and Allowances, $3,000; Sales Discounts, $1,500; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have
normal balances.
Prepare the second closing entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit
and credit columns.
View transaction list
View journal entry worksheet
General Journal
No
Date
Debit
Credit
No Transaction Recorded
Dec. 31
help_outline

Image Transcriptionclose

The company's adjusted trial balance includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Retained earnings, $63,500; Dividends, $2,000; Sales, $56,000; Sales Returns and Allowances, $3,000; Sales Discounts, $1,500; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances. Prepare the second closing entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns. View transaction list View journal entry worksheet General Journal No Date Debit Credit No Transaction Recorded Dec. 31

fullscreen
check_circle

Expert Answer

star
star
star
star
star
1 Rating
Step 1

Closing entries are passed in the end of the financial year to close all the temporary accounts by transferring their balances to income summary account.

Step 2

Journal Entries in ...

help_outline

Image Transcriptionclose

Journal entry in the books of. Date Particulars Sales A/c Ref Debit Credit Dr 3000 To Sales Return A/c 3000 (Being, Net Sales computed) Sales A/c Dr 53000 To Income Summary A/c 53000 (Being, Net Sales revenue transferred to Income summary) Income Summary A/c Dr 49500 To Sales Discount A/c 1500 To Depreciation Exp A/c To Salaries Expense A/c (Being, all expenses transferred to Income summary account) 25000 23000

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Final Accounts

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: how do I calculate ending inventory for FIFO, LiFO, and average. I am working on problem p7-2  page ...

A: There are 3 methods for the valuation of inventory: First in, first Out Method:First in, first Out M...

question_answer

Q: Two income statements for Cornea Company follow: Cornea CompanyIncome StatementsFor Years Ended D...

A: Vertical analysis: The comparison of an item of a financial statement against the total amount of th...

question_answer

Q: [The following information applies to the questions displayed below.] The stockholders' equity secti...

A: Average cost per share of acquired treasury stock, is calculated by dividing the treasury stock capi...

question_answer

Q: Spree Company sold $769,300 of goods during the year at a cost of goods sold of $548,600. Inventory ...

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times ...

question_answer

Q: Please help

A: 1.Prepare journal entry to record the establishment of the petty cash fund on September 4.

question_answer

Q: I need some guidance with the following question. We do not need to complete form 1040 or any schedu...

A: Taxable income is calculated on income from salary, bonus, long term & short-term capital gains,...

question_answer

Q: In its first month of operations, Crane Company made three purchases of merchandise in the following...

A: Calculate the average unit cost.

question_answer

Q: Pirate Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lob...

A: In process costing, costs are accumulated by department for a period of time. The production report ...

question_answer

Q: Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather acce...

A: Effect of transaction.