Question

Below the Adjusted Trial Balance for Torr's Towing Services is given.

Using the Adjusted Trial Balance prepare the closing entries at June 30, 2019 (on a piece of paper) and select the correct answer to the questions asked about the closing entries.

    TORR'S TOWING SERVICES
WORKSHEET  
FOR THE YEAR ENDED JUNE 30, 2019
ADJUSTED TRIAL BALANCE
ACCOUNT TITLES       DEBIT ($)   CREDIT ($)
      
Cash       56,820.00     
Accounts Receivable       28,200.00     
Towing Supplies       9,000.00     
Notes Receivable       2,500.00     
Land       180,000.00     
Vehicles       66,000.00     
Accumulated depreciation -            
Vehicles          60,000.00
Accounts Payable          31,100.00
Unearned Revenue          1,400.00
Notes Payable          20,000.00
Capital - Torr Tait          205,500.00
Withdrawals - Torr Tait       3,000.00     
Towing Service Revenue          143,500.00
Rent Revenue          28,000.00
Advertising Expense       3,500.00     
Insurance Expense       1,200.00     
Internet Expense       1,160.00     
Meals and Entertainment Expense   2,500.00     
Telephone Expense       1,120.00     
Utilities Expense       10,800.00     
Wage Expense       121,750.00     
      
      
      
Depreciation - Vehicles       7,200.00     
Interest Expense       400.00     
Supplies Expense       9,000.00     
Interest Payable          400.00
Wages Payable          14,250.00
504,150.00   504,150.00

What is the total amount posted to the Income Summary account to close out the expense accounts?

Answer 1
Choose...
What is the journal entry to close out the Withdrawal's account?

Answer 2
Choose...
What type of account is the Income Summary account?

Answer 3
Choose...
What is the total amount posted to the Owners' Capital account to close out the Income Summary account?

Answer 4
Choose...
What is the total amount posted to the Income Summary account to close out the revenue account(s)?

Answer 5
Choose...

Answer 1

Req 1.
Total amount of expense:
Advertising expense			3500
Insurance expense			1200
Internet expense			1160
Meals and entertainment expense	2500
Telephone xpense			1120
Utilities expense			10800
Wages expense			121750
Depreciation-Vehicle			7200
Interest expense			400
Supplies expense			9000
Amount in Income Summary for Closing expense	158630
Answer is $ 158,630
Req 2
Journal entry for closing withdrawal
S.no.	Accounts title and explanations		Debit $	Credit $
a.	Torr Tait Capital			3000
	Torr Tait Withdrawals			3000
	(for closing the withdrawals)
Req 3.
Income Summary is a TEMPORARY account
Req 4.
Total revenue					171500
Less: Total expense					158630
Total amount posted to Capital to close Income summary	12870
Req 5.
Total amount to close the Revenues:
Towing service revenue		143500
Rent revenue			28000
Total amount to close the Revenues:	171500