Question

Journalizing and Posting Closing Entries
The adjusted trial balance as of December 31, 2015, for Brooks Consulting Company contains the following selected accounts.

Adjusted Account Balances
	Debit	Credit
Service Fees Earned		€32,120
Rent Expense	€8,320
Salaries Expense	18,280
Supplies Expense	2,240
Depreciation Expense	4,080
Retained Earnings		26,800

(a) Prepare entries to close these accounts in journal entry form.

General Journal
	Description		Debit	Credit
Dec. 31	(1)	AnswerCashRetained EarningsService Fees EarnedIncome Expense	Answer	Answer
		AnswerIncome ExpenseService Fees EarnedCashRetained Earnings	Answer	Answer
		To close revenue account.
Dec. 31	(2)	AnswerIncome ExpenseCashRetained EarningsService Fees Earned	Answer	Answer
		Rent Expense	Answer	Answer
		Salaries Expense	Answer	Answer
		Supplies Expense	Answer	Answer
		Depreciation Expense	Answer	Answer
		To close the expense accounts.

(b) Set up T-accounts for each of the ledger accounts, enter the balances above, and post the closing entries to them. After these entries are posted, show the closing balance for each account.

Service Fees Earned
Beg. Balance	Answer	Answer
(1)	Answer	Answer
Balance	Answer	Answer

Rent Expense
Beg. Balance	Answer	Answer
(2)	Answer	Answer
Balance	Answer	Answer

Salaries Expense
Beg. Balance	Answer	Answer
(2)	Answer	Answer
Balance	Answer	Answer

Supplies Expense
Beg. Balance	Answer	Answer
(2)	Answer	Answer
Balance	Answer	Answer

Depreciation Expense
Beg. Balance	Answer	Answer
(2)	Answer	Answer
Balance	Answer	Answer

Retained Earnings
Beg. Balance	Answer	Answer
(1)	Answer	Answer
(2)	Answer	Answer
Balance	Answer	Answer

Answer 1

	General Journal
		Description		Debit	Credit
	Dec. 31	1	Service fees earned	32,120
			retained earnings		32,120
			To close revenue account.
	Dec. 31	2)	Retained earnings	32,920
			Rent Expense		8,320
			Salaries Expense		18,280
			Supplies Expense		2,240
			Depreciation Expense		4,080
	Service Fees Earned
	Beg. Balance		32,120
	1)	32,120
	Balance		0
	Rent Expense
	Beg. Balance	8,320
	2		8,320
	Balance	0
	Salaries Expense
	Beg. Balance	18,280
	2		18,280
	Balance	0
	Supplies Expense
	Beg. Balance	2,240
	2		2,240
	Balance	0
	Depreciation Expense
	Beg. Balance	4,080
	2		4,080
	Balance	0
	Retained Earnings
	Beg. Balance		26,800
	1)		32,120
	2)	32,920
	Balance		26,000