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Sample Problem Sample Problem Chapter 6 Chapter 6

Sample Problem

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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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Page 1: Sample Problem

Sample ProblemSample ProblemSample ProblemSample Problem

Chapter 6Chapter 6

Page 2: Sample Problem

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.

                                                                                                                              

Page 3: Sample Problem

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

Page 4: Sample Problem

Step 1: Transfer Revenue Account Balances

General Journal Page 4Date Description Debit Credit2007 Closing EntriesDec. 31 Fees Income 85,000

Income Summary85,000

Page 5: Sample Problem

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

Page 6: Sample Problem

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

Page 7: Sample Problem

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