Question

Okabe Company ended its fiscal year on July 31, 2017. The company’s adjusted trial balance as of the end of its fiscal year is shown below. OKABE COMPANY Adjusted Trial Balance July 31, 2017 No. Account Titles Debit Credit 101 Cash $9,900 112 Accounts Receivable 9,200 157 Equipment 16,100 158 Accumulated Depreciation—Equip. $7,400 201 Accounts Payable 4,900 208 Unearned Rent Revenue 1,700 301 Owner’s Capital 45,500 306 Owner’s Drawings 16,100 400 Service Revenue 65,000 429 Rent Revenue 6,400 711 Depreciation Expense 8,900 726 Salaries and Wages Expense 55,700 732 Utilities Expense 15,000      $130,900 $130,900

* Question 3 Your answer is partially correct. Try again. Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 31 Service Revenue 65000     Rent Revenue 6400     Income Summary     71400 (To close revenue accounts) July 31 Income Summary     Depreciation Expense     8900 Salaries and Wages Expense     55700 Utilities Expense     15000 (To close expense accounts) July 31     Income Summary     (To close net income / (loss)) July 31 Owner's Capital     Owner's Drawings     (To close drawings)

Answer 1

There is a loss in above case so the Owner's capital will be reduced due to loss.

Date	Account Titles and Explanation	Debit	Credit
31-Jul	Service Revenue	$ 65,000.00
	Rent Revenue	$    6,400.00
	Income Summary		$    71,400.00
	(To close revenue accounts)
31-Jul	Income Summary	$ 79,600.00
	Depreciation Expense		$      8,900.00
	Salaries and Wages Expense		$    55,700.00
	Utilities Expense		$    15,000.00
	(To close expense accounts)
31-Jul	Owner's Capital	$    8,200.00
	Income Summary		$      8,200.00
	(To close net income / (loss))
31-Jul	Owner's Capital	$ 16,100.00
	Owner's Drawings		$    16,100.00
	(To close drawings)