Question

Alert Security Services Co. offers security services to business clients.

Based on the end-of-period spreadsheet, prepare the closing entries for Alert Security Services Co.

Alert Security Services Co.

End-of-Period Spreadsheet

For the Year Ended October 31, 2018

1		Adjusted	Adjusted
2		Trial Balance	Trial Balance	Income Statement	Income Statement	Balance Sheet	Balance Sheet
3		Debit	Credit	Debit	Credit	Debit	Credit
4	Cash	13.00
5	Accounts Receivable	108.00
6	Supplies	8.00
7	Prepaid Insurance	2.00
8	Land	184.00
9	Equipment	50.00
10	Accumulated Depreciation-Equipment		7.00
11	Accounts Payable		34.00
12	Wages Payable		2.00
13	Common Stock		50.00
14	Retained Earnings		196.00
15	Dividends	6.00
16	Fees Earned		227.00
17	Wages Expense	108.00
18	Rent Expense	15.00
19	Insurance Expense	8.00
20	Utilities Expense	7.00
21	Supplies Expense	2.00
22	Depreciation Expense	2.00
23	Miscellaneous Expense	2.00
24		$516.00	$516.00
25	Net income (loss)

CHART OF ACCOUNTS
Alert Security Services Co.
General Ledger
ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Land 17 Equipment 18 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Wages Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary	REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 52 Rent Expense 53 Insurance Expense 54 Utilities Expense 55 Supplies Expense 56 Depreciation Expense 57 Miscellaneous Expense

Answer 1

Below is the solution to your query. Company having Net income of $68 which shall be tranferred in to Retained Earnings and entry would be as follows:

Profit & Loss A/c ----Dr $68

Retained Earnings---Cr $68

(Being Profit transferred in RE)

Note: By passing this entry your balance sheet shall get matched as shown below.

	Trial Balance	Trial Balance	Income Statement	Income Statement	Balance Sheet	Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	13	0	0	0	13	0
Accounts Receivable	108	0	0	0	108	0
Supplies	8	0	8	0	0	0
Prepaid Insurance	2	0	0	0	2	0
Land	184	0	0	0	184	0
Equipment	50	0	0	0	50	0
Accumulated Depreciation-Equipment		7	0	0	0	7
Accounts Payable		34	0	0	0	34
Wages Payable		2	0	0	0	2
Common Stock		50	0	0	0	50
Retained Earnings		196	0	0	0	196
Dividends	6	0	6	0	0	0
Fees Earned		227	0	227	0	0
Wages Expense	108	0	108	0	0	0
Rent Expense	15	0	15	0	0	0
Insurance Expense	8	0	8	0	0	0
Utilities Expense	7	0	7	0	0	0
Supplies Expense	2	0	2	0	0	0
Depreciation Expense	2	0	2	0	0	0
Miscellaneous Expense	3	0	3	0	0	0
	$516.00	$516.00	159	227	357	289
Net income				68		68