Question

In: Accounting

Morris Company had the following adjusted trial balance: Additional Resources Account Titles Debit Credit Cash $25,220...

Morris Company had the following adjusted trial balance:

Additional Resources

Account Titles Debit Credit
Cash

$25,220
Accounts Receivable

18,400
Supplies

8,680
Equipment

44,400
Accumulated Depreciation

$7,000
Accounts Payable

4,850
Deferred Rent Revenue

2,280
Capital Stock

41,570
Retained Earnings

21,900
Dividends

15,700
Commission Revenue

49,200
Rent Revenue

6,600
Depreciation Expense

5,700
Utilities Expense

9,900
Supplies Expense

5,400
Total

$133,400

$133,400

The president of Morris Company has asked you to close the books (prepare and process the closing entries).

Required:

After the closing process has been completed, answer the following questions:

During the closing process, what amount was transferred from the income summary account to the Retained Earnings account in the third closing entry (i.e., after revenue and expense accounts have been closed to Income Summary)?

$
What is the balance in the Retained Earnings account?

$
What is the balance in the rent revenue account?

$

Solutions

Expert Solution

Before giving the answers of above mentioned questions we need to prepare Income Statement and Statement of Retained Earnings:-

Morris Company

Income Statement

Accounts Amount Amount
Revenues:-
Commission Revenue $49,200
Rent Revenue 6,600
Total Revenues $55,800
Less:- Expenses
Depreciation Expense $5,700
Utilities Expense 9,900
Supplies Expense 5,400
Total Expenses ($21,000)
Net Income $34,800

Morris Company

Statement of Retained Earnings

Accounts Amount
Retained Earnings $21,900
Add:- Net Income 34,800
56,700
Less:- Dividends (15,700)
Retained Earnings Ending $41,000

The amount transferred from Income Summary to Retained Earnings Accounts in the third closing entry was $34,800 (Net Income)

The Balance of Retained Earnings is $41,000.

The Balance in Rent Revenue Account is $6,600.

Preparing Closing Entries:-

Morris Company

General Journal

No. Accounts Title and Explanation Debit Credit
1. Commission Revenue $49,200
Rent Revenue $6,600
Income Summary $55,800
(To close Revenue Accounts)
2. Income Summary $21,000
Depreciation Expense $5,700
Utilities Expense $9,900
Supplies Expense $5,400
(To close Expenses Accounts)
3. Income Summary $34,800
Retained Earnings $34,800
(To close Income Summary)
4. Retained Earnings $15,700
Dividends $15,700
(To close Dividends Account)

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Ross Company had the following adjusted trial balance: Additional Resources Account Titles Debit Credit Cash $25,580...
Ross Company had the following adjusted trial balance: Additional Resources Account Titles Debit Credit Cash $25,580 Accounts Receivable 18,500 Supplies 9,800 Equipment 35,100 Accumulated Depreciation $9,800 Accounts Payable 4,530 Deferred Rent Revenue 1,540 Capital Stock 21,510 Retained Earnings 22,400 Dividends 13,600 Commission Revenue 56,800 Rent Revenue 5,500 Depreciation Expense 5,900 Utilities Expense 8,500 Supplies Expense 5,100 Total $122,080 $122,080 The president of Ross Company has asked you to close the books (prepare and process the closing entries). Required: After the...
On December 31, Gray Company had the following adjusted trial balance: Additional Resources Account Titles Debit...
On December 31, Gray Company had the following adjusted trial balance: Additional Resources Account Titles Debit Credit Cash 14,560 Accounts Receivable 8,470 Prepaid Rent 7,140 Equipment 46,200 Accumulated Depreciation 7,800 Accounts Payable 33,320 Capital Stock 22,000 Retained Earnings 24,600 Dividends 16,000 Sales 71,800 Sales Discounts 1,150 Sales Returns and Allowances 1,420 Cost of Goods Sold 43,080 Selling Expenses 10,100 General and Administrative Expenses 11,400 159,520 159,520 Required Prepare the third closing entry to close the Income Summary account to the...
Account Unadjusted trial balance(debit) Unadjusted trial balance(credit Adjusting entries(debit) adjusting entries(credit) adjusted trial balance(debit) Adjusted trial...
Account Unadjusted trial balance(debit) Unadjusted trial balance(credit Adjusting entries(debit) adjusting entries(credit) adjusted trial balance(debit) Adjusted trial balance(credit) Cash 32,236.75 32,236.75 baking supplies 18,500 18,500 merchandise inventory(fifo) 175.65 175.65 prepaid rent 1500 1500 prepaid insurance 2400 2400 baking equipment 6000 6000 accumulated depreciation 208.33 208.33 office supplies 600 600 accounts receivable 7700 7700 notes payable 10,000 10,000 wages payable 480 480 common stock 16,000 16,000 dividends 10,000 10,000 bakery sales 55,000 55,000 merchandise sales 221 221 baking supplies expense rent expense...
A company has the following adjusted trial balance: Account Debit Credit Cash $1100​ ​ Accounts Receivable...
A company has the following adjusted trial balance: Account Debit Credit Cash $1100​ ​ Accounts Receivable 900​ ​ Inventory 1800​ ​ Supplies 2000​ ​ Prepaid Rent 400​ ​ Land 6500​ ​ Building 39,800​ ​ Accumulated Depreciation—Building ​ $8000​ Accounts Payable ​ 7600​ Unearned Revenue ​ 4300​ Notes Payable, due 2020 ​ 2300​ Common Stock ​ 6400​ Retained Earnings ​ 2700​ Dividends 800​ ​ Service Revenue ​ 33,800​ Rent Expense 1300​ ​ Supplies Expense 1100​ ​ Salaries Expense 6200​ ​ Depreciation...
Following is the adjusted trial balance of Wilson Trucking Company       Account Title Debit Credit...
Following is the adjusted trial balance of Wilson Trucking Company       Account Title Debit Credit Cash $ 5,400 Accounts receivable 29,000 Office supplies 6,573 Trucks 161,000 Accumulated depreciation—Trucks $ 33,166 Land 42,000 Accounts payable 9,400 Interest payable 20,000 Long-term notes payable 60,000 Common stock 23,624 Retained earnings 94,498 Dividends 17,000 Trucking fees earned 124,000 Depreciation expense—Trucks 21,392 Salaries expense 56,046 Office supplies expense 16,000 Repairs expense—Trucks 10,277 Totals $ 364,688 $ 364,688 Use the above adjusted trial balance to...
Rockin Robbin Music Company Adjusted Trial Balance June 30, 2018 Balance Account Title Debit Credit Cash...
Rockin Robbin Music Company Adjusted Trial Balance June 30, 2018 Balance Account Title Debit Credit Cash $3,600 Accounts Receivable 38,700 Merchandise Inventory 17,800 Office Supplies 800 Furniture 39,600 Accumulated Depreciation—Furniture $8,900 Accounts Payable 14,100 Salaries Payable 1,100 Unearned Revenue 6,900 Notes Payable, long-term 13,000 Robbin, Capital 33,250 Robbin, Withdrawals 43,000 Sales Revenue 189,000 Cost of Goods Sold 85,050 Selling Expense 19,100 Administrative Expense 17,500 Interest Expense 1,100 Total $266,250 $266,250 1.Prepare Rockin Robbin's ​multi-step income statement for the year ended...
The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $...
The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $ 265,100 Accounts receivable 51,000 Interest receivable 23,200 Notes receivable (due in 90 days) 173,000 Office supplies 15,500 Automobiles 173,000 Accumulated depreciation—Automobiles $ 55,000 Equipment 140,000 Accumulated depreciation—Equipment 28,000 Land 84,000 Accounts payable 97,000 Interest payable 50,000 Salaries payable 22,000 Unearned fees 34,000 Long-term notes payable 154,000 Common stock 35,580 Retained earnings 320,220 Dividends 53,000 Fees earned 584,000 Interest earned 32,000 Depreciation expense—Automobiles 27,500 Depreciation...
The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $...
The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $ 157,200 Accounts receivable 51,500 Interest receivable 18,600 Notes receivable (due in 90 days) 171,500 Office supplies 16,000 Automobiles 168,000 Accumulated depreciation—Automobiles $ 55,000 Equipment 140,000 Accumulated depreciation—Equipment 27,000 Land 81,000 Accounts payable 96,000 Interest payable 25,000 Salaries payable 26,000 Unearned fees 36,000 Long-term notes payable 154,000 Common stock 27,580 Retained earnings 248,220 Dividends 53,000 Fees earned 574,000 Interest earned 28,000 Depreciation expense—Automobiles 27,000 Depreciation...
The adjusted trial balance at April 30, 2017, for Willard Co. follows. Account Debit Credit Cash...
The adjusted trial balance at April 30, 2017, for Willard Co. follows. Account Debit Credit Cash $106,300 Accounts receivable 25,620 Trucks 560,000 Accumulated depreciation, trucks $84,000 Franchise 55,000 Accounts payable 20,540 Salaries payable 10,200 Unearned revenue 35,000 Sid Willard, capital 250,000 Sid Willard, withdrawals 75,000 Plumbing revenue 850,630 Depreciation expense, trucks 84,000 Salaries expense 272,450 Rent expense 60,000 Advertising expense 12,000 Income summary Totals $1,250,370 $1,250,370 Required: 1.      Prepare the four closing entries. 2.      Prepare a post-closing trial balance.
Sunshine Computer Sales and Services Adjusted Trial Balance as at 31st December 2019 Account Titles Debit...
Sunshine Computer Sales and Services Adjusted Trial Balance as at 31st December 2019 Account Titles Debit (RM) Credit (RM) Capital 114,000.00 Motor vehicle 45,000.00 Office equipment 20,000.00 Bank 185,996.67 Petty cash 146,646.00 Sales 413,530.00 Return inwards 9,000.00 Purchases 121,000.00 Return outwards 13,000.00 Discount allowed 6,180.00 Discount received 510.00 Insurance 2,640.00 Petrol 4,000.00 Salaries 76,000.00 Stationary supplies 3,900.00 Stationery cost 1,900.00 Telephone 6,154.00 Upkeep of motor vehicle 4,000.00 Water and electricity 7,000.00 Interest income 30,000.00 Bank loan 100,000.00 Furniture 2,500.00 Account...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT