Question

The four steps in the closing procedure are as follows:

STEP 1. Close the revenue account(s) into Income Summary.

STEP 2. Close the expense account(s) into Income Summary.

STEP 3. Close the Income Summary account into the Capital account, transferring the net income or net loss to the Capital account.

STEP 4. Close the Drawing account into the Capital account.

The adjusted trial balance for Maria's Beauty Spa is listed below:

Maria's Beauty Spa Adjusted Trial Balance June 30, 20--
ACCOUNT TITLE		DEBIT BALANCE		CREDIT BALANCE
Cash		11,185.00
Accounts Receivable		750.00
Supplies		220.00
Prepaid Insurance		500.00
Accounts Payable				150.00
Maria Costa, Capital				10,520.00
Maria Costa, Drawing		1,200.00
Income from Spa Services				7,500.00
Wages Expense		2,620.00
Rent Expense		700.00
Telephone Expense		65.00
Supplies Expense		585.00
Miscellaneous Expense		345.00
		18,170.00		18,170.00

1.) Using this information above, journalize the four closing entries.

For compound entries, if an amount box does not require an entry, leave it blank.

GENERAL JOURNAL				PAGE 5
DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
20--
June 30
	Close the revenue account into Income Summary
June 30
	Close the expense accounts into Income Summary.
June 30
	Close the Income Summary account into the Capital account.
June 30
	Close the Drawing account into the Capital account.

A post-closing trial balance consists of the final balances of the accounts remaining open. It is the final proof that the debit balances equal the credit balances before the posting for the new fiscal period begins.

Below is the information of Maria's Beauty Spa:

Maria's Beauty Spa Adjusted Trial Balance June 30, 20--
ACCOUNT TITLE		DEBIT BALANCE		CREDIT BALANCE
Cash		11,185.00
Accounts Receivable		750.00
Supplies		220.00
Prepaid Insurance		500.00
Accounts Payable				150.00
Maria Costa, Capital				10,520.00
Maria Costa, Drawing		1,200.00
Income from Spa Services				7,500.00
Wages Expense		2,620.00
Rent Expense		700.00
Telephone Expense		65.00
Supplies Expense		585.00
Miscellaneous Expense		345.00
		18,170.00		18,170.00

2.) Prepare a post-closing trial balance for Maria’s Beauty Spa. List all the accounts in the proper order as described in the textbook. If an amount box does not require an entry, leave it blank.

Maria's Beauty Spa
Post-Closing Trial Balance
June 30, 20--
ACCOUNT NAME	DEBIT BALANCE	CREDIT BALANCE
Accounts Payable	$	$
Accounts Receivable
Supplies
Prepaid Insurance
Accounts Payable
	$	$

Answer 1