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Sample Problem. Chapter 6. On December 31 the ledger of Henderson Company contained the following account balances. All accounts have normal balances. Journalize the closing entries. Cash $36,000Eugene Henderson$24,000 Accounts Receivable 2,400Fees Income 85,000 - PowerPoint PPT Presentation
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Sample ProblemSample ProblemSample ProblemSample Problem
Chapter 6Chapter 6
Journalize closing entries.
On December 31 the ledger of Henderson Company contained the following account balances:All the accounts have normal balances. Journalize the closing entries. Use 4 as the general journal page number.
On December 31 the ledger of Henderson Company contained the following account
balances. All accounts have normal balances. Journalize the closing entries.
Cash $36,000 Eugene Henderson $24,000Accounts Receivable 2,400 Fees Income 85,000Supplies 1,600 Depreciation expense 3,000Equipment 30,000 Salaries expense 28,000Accumulated Depr. 3,000 Supplies expense 4,000Accounts Payable 4,000 Telephone expense 3,600E. Henderson, capital 46,200 Utilities expense 7,200
Step 1: Transfer Revenue Account Balances
General Journal Page 4Date Description Debit Credit2007 Closing EntriesDec. 31 Fees Income 85,000
Income Summary85,000
Step 2: Transfer Expense Account Balances
General Journal Page 4Date Description Debit Credit2007 Closing EntriesDec. 31 Income Summary 45,800
Depreciation expense 3,000 Salaries expense
28,000 Supplies expense 4,000 Telephone expense
3,600 Utilities expense 7,200
Step 3: Transfer Net Income or Net Loss to Owner’s Equity
Income Summary
45,800 85,000 Bal. 39,200
Journal Entry:Date Description Debit
Credit2007 Closing EntriesDec. 31 Income Summary 39,200
E. Henderson, capital39,200
Step 4: Transfer the Drawing Account balance to Capital
General Journal Page 4Date Description Debit
Credit2007 Closing EntriesDec. 31 E. Henderson, capital24,000
E. Henderson, drawing24,000