COLLEGE ACCOUNTING: CONTEMP APPROACH
4th Edition
ISBN: 9781307291599
Author: Haddock
Publisher: MCG/CREATE
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Chapter 6, Problem 7E
To determine
Journalize the closing entries and determine the new balance of MW, capital.
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Preparing and Analyzing Closing Entries
At December 31, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $59,800; Cost of Goods Sold, $31,400; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends (declared and paid), $5,000; Wages Expense, $8,000, and Interest Payable, $2,100.
Required:
Prepare the closing entries for Aulani at December 31. If an amount box does not require an entry, leave it blank.
How does the closing process affect Aulani's retained earnings?
Preparing and Analyzing Closing Entries
At December 31, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $63,500; Cost of Goods Sold, $33,300;
Retained Earnings, $20,000; Interest Expense, $3,200; Dividends (declared and paid), $5,000; Wages Expense, $8,000, and Interest Payable, $2,100.
Required:
1. Prepare the closing entries for Aulani at December 31. If an amount box does not require an entry, leave it blank.
Dec. 31 Sales Revenue
Retained Earnings
Dec. 31 Retained Earnings
Cost of Goods Sold
Interest Expense
Wages Expense
Dec. 31 Retained Earnings
Dividends
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000 00
00
2. How does the closing process affect Aulani's retained earnings?
After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $2,450,000 and a credit of $3,000,000. At the same date, Retained Earnings has a credit balance of $8,222,600, and Dividends has a balance of $125,000.
Required:
A.
Journalize the entries required to complete the closing of the accounts on December 31. Refer to the Chart of Accounts for exact wording of account titles.
B.
Determine the amount of Retained Earnings at the end of the period.
CHART OF ACCOUNTS
General Ledger
ASSETS
11
Cash
12
Accounts Receivable
13
Prepaid Insurance
14
Supplies
15
Land
16
Building
17
Accumulated Depreciation-Building
18
Equipment
19
Accumulated Depreciation-Equipment
LIABILITIES
21
Accounts Payable
22
Salaries and Wages Payable
23
Unearned Rent
EQUITY
31
Common Stock
32
Retained Earnings
33
Dividends
34
Income Summary
REVENUE
41
Fees Earned…
Chapter 6 Solutions
COLLEGE ACCOUNTING: CONTEMP APPROACH
Ch. 6 - What is the journal entry to close the drawing...Ch. 6 - How is the Income Summary account classified?Ch. 6 - Prob. 1.3SRQCh. 6 - Prob. 1.4SRECh. 6 - Prob. 1.5SRECh. 6 - Prob. 1.6SRACh. 6 - Prob. 2.1SRQCh. 6 - Prob. 2.2SRQCh. 6 - What accounts appear on the post-closing trial...Ch. 6 - Prob. 2.4SRE
Ch. 6 - Prob. 2.5SRECh. 6 - On which financial statement would you find the...Ch. 6 - Prob. 1CSRCh. 6 - A firm has the following expenses: Rent Expense,...Ch. 6 - Prob. 3CSRCh. 6 - What is the last step in the accounting cycle?Ch. 6 - Is the following statement true or false? Why? All...Ch. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - What accounts appear on a postclosing trial...Ch. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - How is the Income Summary account used in the...Ch. 6 - Briefly describe the flow of data through a simple...Ch. 6 - Prob. 10DQCh. 6 - Prob. 1ECh. 6 - Accounting cycle. Following are the steps in the...Ch. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 1PBCh. 6 - Prob. 2PBCh. 6 - Prob. 3PBCh. 6 - Prob. 4PBCh. 6 - The Trial Balance section of the worksheet for...Ch. 6 - Demetria Davis, the bookkeeper for Home Interiors...Ch. 6 - Prob. 1MFCh. 6 - Prob. 2MFCh. 6 - Why is it important that a firms financial records...Ch. 6 - Prob. 4MFCh. 6 - Prob. 1EDCh. 6 - Prob. 1ICCh. 6 - Prob. 1MPS
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