Question

The adjusted ledger accounts of RD Consulting on December 31, 2019, appear as follows.

Account Name	Balance
Cash		6,100
Accounts Receivable		1,450
Supplies		1,300
Prepaid Insurance		610
Equipment		12,500
Accumulated Depreciation–Equipment		2,000
Accounts Payable		2,650
Roger Dye, Capital		13,300
Roger Dye, Drawing		2,600
Fees Income		11,800
Supplies Expense		660
Insurance Expense		510
Depreciation Expense–Equipment		460
Salaries Expense		2,650
Utilities Expense		910

Prepare the Balance Sheet and Income Statement columns of the worksheet. Prepare the closing entries for RD Consulting on December 31, 2019. All accounts have normal balances and adjusting entries have been made.

Answer 1

Account Name	Income statement		Balance sheet
	Debit	Credit	Debit	Credit
Cash			$6100
Accounts receivable			$1450
Supplies			$1300
Prepaid insurance			$610
Accounts payable				$2650
Roger Dye, Capital				$13300
Roger Dye, Drawing			$2600
Equipment			$12500
Accumulated depreciation				2000
Fees Income		11,800
Depreciation expense	$460
Insurance expenses	$510
Supplies expenses	$660
Utilities	$910
Salaries	$2650
Net income	$6610			$6610
Total	$11800	$11800	$24560	$24560

Date	Account title	Debit	Credit
Dec 31,18	Income summary	$5190
	Depreciation expense		$460
	Insurance expenses		$510
	Supplies expenses		$660
	Utilities		$910
	Salaries		$2650
	(Close expense account to income summary)
	Fees income	$11800
	Income summary		$11800
	(Close income account to income summary)
	Income summary	$6610
	Roger dye capital		$6610
	Roger dye drawings	$2600
	Roger dye capital		$2600