Question

On July 31, 20Y7, the balances of the accounts appearing in the ledger of Yang Interiors Company, a furniture wholesaler, are as follows:

Accumulated Depreciation-Building	$443,000
Administrative Expenses	534,000
Building	984,000
Cash	95,000
Cost of Merchandise Sold	941,000
Interest Expense	7,000
Merchandise Inventory	140,000
Notes Payable	121,000
Peter Bronsky, Capital	644,000
Peter Bronsky, Drawing	18,000
Sales	1,745,000
Sales Tax Payable	4,500
Selling Expenses	194,000
Store Supplies	19,000
Store Supplies Expense	25,500

Required:

Prepare the July 31, 20Y7, closing entries for Yang Interiors Company. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Chart of Accounts

CHART OF ACCOUNTS
Yang Interiors Company
General Ledger
ASSETS 110 Cash 130 Merchandise Inventory 141 Store Supplies 190 Building 191 Accumulated Depreciation-Building LIABILITIES 218 Sales Tax Payable 221 Notes Payable EQUITY 310 Peter Bronsky, Capital 311 Peter Bronsky, Drawing	REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 523 Depreciation Expense 534 Store Supplies Expense 539 Selling Expenses 540 Administrative Expenses 710 Interest Expense

Journal

Prepare the July 31, 20Y7, closing entries for Yang Interiors Company. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
2
3
4
5
6
7
8
9
10

Answer 1