1 / 7

Sample Problem

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 $36,000 Eugene Henderson $24,000 Accounts Receivable 2,400 Fees Income 85,000

tiva
Download Presentation

Sample Problem

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Sample Problem Chapter 6

  2. 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 $24,000 Accounts Receivable 2,400 Fees Income 85,000 Supplies 1,600 Depreciation expense 3,000 Equipment 30,000 Salaries expense 28,000 Accumulated Depr. 3,000 Supplies expense 4,000 Accounts Payable 4,000 Telephone expense 3,600 E. Henderson, capital 46,200 Utilities expense 7,200

  3. Step 1: Transfer Revenue Account Balances General Journal Page 4 Date Description Debit Credit 2007 Closing Entries Dec. 31 Fees Income 85,000 Income Summary 85,000

  4. Step 2: Transfer Expense Account Balances General Journal Page 4 Date Description Debit Credit 2007 Closing Entries Dec. 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

  5. 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 Credit 2007 Closing Entries Dec. 31 Income Summary 39,200 E. Henderson, capital 39,200

  6. Step 4: Transfer the Drawing Account balance to Capital General Journal Page 4 Date Description Debit Credit 2007 Closing Entries Dec. 31 E. Henderson, capital 24,000 E. Henderson, drawing 24,000

More Related