Question

On the “CJE” worksheet, prepare the closing entries in good form for Grizzlies, Inc. at the end of December 31, 2017. Again, all numbers should be cell references or formulas, not manually entered.

Grizzlies, Inc.
Worksheet
For the Year Ended December 31, 2017
	Unadjusted				Adjusted
	Trial Balance		Adjustments		Trial Balance		Income Stmt		Balance Sheet
Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	36,000				36,000				36,000
Accounts Receivable	277,000				277,000				277,000
Inventory	242,500				242,500				242,500
Prepaid Insurance	11,200			4,200	7,000				7,000
Prepaid Rent	3,000			1,200	1,800				1,800
Store Supplies	-		2,100		2,100				2,100
Shop Supplies	7,500			3,600	3,900				3,900
Store Equipment	120,000				120,000				120,000
Accumulated Depreciation - Store Equipment		13,200		15,840		29,040				29,040
Office Equipment	32,000				32,000				32,000
Accumulated Depreciation - Office Equipment		2,550		10,200		12,750				12,750
Accounts Payable		49,000				49,000				49,000
Salaries Payable				10,800		10,800				10,800
Interest Payable				360		360				360
Utilities Payable				1,300		1,300				1,300
Unearned Consulting Revenue		14,000	10,500			3,500				3,500
Unearned Rent Revenue		16,800	15,400			1,400				1,400
Note Payable		18,000				18,000				18,000
Common Stock		300,000				300,000				300,000
Retained Earnings		189,350				189,350				189,350
Dividends	12,800				12,800				12,800
Sales Revenue		1,576,150				1,576,150		1,576,150
Consulting Revenue				10,500		10,500		10,500
Rent Revenue				15,400		15,400		15,400
Interest Revenue
Cost of Goods Sold	975,000				975,000		975,000
Sales Salaries Expense	275,000		7,560		282,560		282,560
Office Salaries Expense	150,000		3,240		153,240		153,240
Miscellaneous Administrative Expense	5,650				5,650		5,650
Miscellaneous Selling Expense	13,900				13,900		13,900
Depreciation Expense - Store Equipment			15,840		15,840		15,840
Depreciation Expense - Office Equipment			10,200		10,200		10,200
Store Supplies Expense	17,500			2,100	15,400		15,400
Shop Supplies Expense			3,600		3,600		3,600
Rent Expense			1,200		1,200		1,200
Insurance Expense			4,200		4,200		4,200
Interest Expense			360		360		360
Utilities Expense-Store			1,118		1,118		1,118
Utilities Expense-Office			182		182		182
	2,179,050	2,179,050	75,500	75,500	2,217,550	2,217,550	1,482,450	1,602,050	735,100	615,500
						Net Income	119,600			119,600
							1,602,050	1,602,050	735,100	735,100

Answer 1

• All closing entries are provided below, along with required explanation:

Date	Accounts Title	Debit	Credit
31-Dec-17	Sales Revenue	$               15,76,150.00
	Consulting Revenue	$                     10,500.00
	Rent Revenue	$                     15,400.00
	Income Summary		$      16,02,050.00
	(revenue accounts with credit balance closed by getting debited)
31-Dec-17	Income Summary	$               14,82,450.00
	Cost of Goods Sold		$        9,75,000.00
	Sales Salaries Expense		$        2,82,560.00
	Office Salaries Expense		$        1,53,240.00
	Miscellaneous Administrative Expense		$              5,650.00
	Miscellaneous Selling Expense		$            13,900.00
	Depreciation Expense - Store Equipment		$            15,840.00
	Depreciation Expense - Office Equipment		$            10,200.00
	Store Supplies Expense		$            15,400.00
	Shop Supplies Expense		$              3,600.00
	Rent Expense		$              1,200.00
	Insurance Expense		$              4,200.00
	Interest Expense		$                  360.00
	Utilities Expense-Store		$              1,118.00
	Utilities Expense-Office		$                  182.00
	(expenses account with debit balances closed by getting credited)
31-Dec-17	Income Summary	$                 1,19,600.00
	Retained earnings		$        1,19,600.00
	(Net Income balance in income summary closed by transferring to Retained Earnings)
31-Dec-17	Retained earnings	$                     12,800.00
	Dividends		$            12,800.00
	(dividends account closed)