Question

Given the following adjusted account balances (all normal), prepare the closing journal entries for Ski Lodge 2 on December 31, 2018.

Cash                       45,000       Prepaid rent          9,000            Jane Goden, Capital                    85,000

Land                        65,000       Service revenue     75,500            Unearned service revenue           24,000

Supplies                  4,000      Interest expense    5,000            Amortization expense - Vehicle    15,000

Rent expense          12,500       Salary expense      46,000            Jane Goden, Withdrawals            20,000

Note payable           70,000       Interest payable     3,000           Acc. amortization, Building           15,000           

Freight Payable        2,200       COGS                   1,000          Building                                      85,000

Rent revenue               500       Supplies expense 8,000           Gross margin                              1,000           

Accounts receivable 32,000       Accounts payable 33,000           Amortization Expense – Building 26,000           

Answer 1