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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

After the accountant posted the adjusting entries for M. Wally, Designer, the work sheet contained the following account balances on May 31:

images

Required

If you are using Working Papers, complete the following:

  1. 1. a. Write the owner’s name on the Capital and Drawing T accounts.

b. Record the account balances in the T accounts for owner’s equity, revenue, and expenses.

  1. 2. Journalize the closing entries using the four steps in correct order. Number the closing entries 1 through 4.
  2. 3. Post the closing entries to the T accounts immediately after you journalize each one to see the effect of the closing entries. Number the closing entries 1 through 4.

Check Figure

Net Loss, $287

1-a.

To determine

Indicate the names of owner above the Capital and Drawing accounts.

Explanation

Owners’ equity: The financial interest of the owners to invest in the business is referred to as owners’ equity or capital...

1-b.

To determine

Open the T-accounts for owners’ equity, revenue, and expenses and record the account balances.

2.

To determine

Prepare closing entries numbering the entries 1 through 4.

3.

To determine

Post the closing entries to T-accounts.

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