Question

E4-23  

Prepare closing entries.

The adjusted trial balance for Ryan Company is given below.

Instructions

Prepare the closing entries for the temporary accounts at August 31.

The trial balances shown below are before and after adjustment for Ryan Company at the end of its fiscal year.

RYAN COMPANY Trial Balance August 31, 2017
	Before Adjustment		After Adjustment
	Dr.	Cr.	Dr.	Cr.
Cash	$10,900		$10,900
Accounts Receivable	8,800		9,400
Supplies	2,500		500
Prepaid Insurance	4,000		2,500
Equipment	16,000		16,000
Accumulated Depreciation—Equipment		$ 3,600		$ 4,800
Accounts Payable		5,800		5,800
Salaries and Wages Payable		0		1,100
Unearned Rent Revenue		1,800		800
Common Stock		10,000		10,000
Retained Earnings		5,500		5,500
Dividends	2,800		2,800
Service Revenue		34,000		34,600
Rent Revenue		12,100		13,100
Salaries and Wages Expense	17,000		18,100
Supplies Expense	0		2,000
Rent Expense	10,800		10,800
Insurance Expense	0		1,500
Depreciation Expense	0		1,200
	$72,800	$72,800	$75,700	$75,700

Answer 1

Particulars	Debit	Credit
Retained earnings	2,800
Dividends		2,800
[Entry to close dividends]
Service revenue	34,600
Rent revenue	13,100
Income summary		47,700
[Entry to close revenue accounts]
Income summary	33,600
Salaries and wages expense		18,100
Supplies		2,000
Rent expense		10,800
Insurance expense		1,500
Depreciation expense		1,200
[Entry to close expense accounts]
Income summary	14,100
Retained earnings		14,100
[Entry to close income summary]