Question

	During its first month of operation, the Bethany's Bicycle Corporation, which specializes in bicycle repairs, completed the following transactions.
	March Transactions
	Date	Transaction Description
	March 1	Began business by making a deposit in a company bank account of $20,000, in exchange for 2,000 shares of $10 par value common stock.
	March 1	Paid the premium on a 1-year insurance policy, $2,400.
	March 1	Paid the current month's store rent expense, $1,900.
	March 3	Purchased repair equipment from Andrew Company, $5,800. Paid $1,000 down and the balance was placed on account. Payments will be $400.00 per month for 12 months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due.
	March 8	Purchased repair supplies from Jackson Company on credit, $650.
	March 10	Paid telephone bill for March, $340.
	March 11	Cash bicycle repair revenue for the first third of March, $1,650.
	March 18	Made payment to Jackson Company, $400.
	March 20	Cash bicycle repair revenue for the second third of March, $2,450.
	March 31	Cash bicycle repair revenue for the last third of March, $1,250.
	March 31	Paid the current month's electice bill, $250.
	March 31	Declared and paid cash dividend of $1,000.

Requirement #8: Prepare the closing entries at March 31 in the General Journal below. Hint:Use the balances for each account which appear on the Adjusted     Trial Balance for your closing entries.

Requirement #9: Post the closing entries to the T-Accounts on the General Ledger ( Step 2) worksheet and compute ending balances. Just add to the adjusted balances already listed.

Answer 1

you can also use income summary account for the closing entries , i have directly used retained earnings account

comment for any query