Question

7aresh company has these accounts on 31st december 2019:

• Cash of $9,380
• Wage Expense of $300
• Accounts Payable of $8,900
• Cost of Goods Sold of $5,900
• Unearned Revenue of $1,170
• Gain on Sale of Equipment of $120
• Inventory of $6,230
• Sales Revenue of $7,510
• Interest Expense of $1,280
• Common Stock (no par value) of $4,610
• Rent Revenue of $1,230
• Retained Earnings of $2,030
• Depreciation Expense of $365
• Prepaid Insurance of $2,100

as of december 31st 2019, provide 7aresh's journal entry

Answer 1

Solution:

7aresh company - Journal Entries
Date	Particulars	Debit	Credit
31-Dec	Service revenue Dr	$7,510.00
	Gain on sale of equipment Dr	$120.00
	Rent Revenue Dr	$1,230.00
	To Income summary		$8,860.00
	(To close revenue account)
31-Dec	Income summary Dr	$7,845.00
	To Wage expense		$300.00
	To Cost of goods sold		$5,900.00
	To Interest Expense		$1,280.00
	To Depreciation Expense		$365.00
	(To close expense account)
31-Dec	Income summary Dr	$1,015.00
	To Retained earnings		$1,015.00
	(To close income to retained Earnings)