Question

On December 31, after adjustments, Gonzalez Company's ledger contains the following account balances:

101	Cash	$	28,200	Dr.
111	Accounts Receivable		15,900	Dr.
121	Supplies		2,100	Dr.
131	Prepaid Rent		38,700	Dr.
141	Equipment		45,000	Dr.
142	Accumulated Depreciation—Equip.		1,050	Cr.
202	Accounts Payable		6,600	Cr.
301	Emilio Gonzalez, Capital (12/1/2019)		46,620	Cr.
302	Emilio Gonzalez, Drawing		6,300	Dr.
401	Fees Income		114,960	Cr.
511	Advertising Expense		3,900	Dr.
514	Depreciation Expense—Equip.		810	Dr.
517	Rent Expense		2,700	Dr.
519	Salaries Expense		19,800	Dr.
523	Utilities Expense		5,820	Dr.
Required: Journalize the closing entries in the general journal. Post the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances. Analyze: What is the balance of the Salaries Expense account after closing entries are posted? Journal entry worksheet Record the closing entry for revenue. Note: Enter debits before credits. Journalize the closing entries in the general journal. Date General Journal Debit Credit Dec 31, 2019

Post the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.

Emilio Gonzalez, Capital Account No. 301 Emilio Gonzalez, Drawing Account No. 302 Date Debit Credit Balance Date Debit Credit Balance Dec 31, 2019 Dec 31, 2019 Dec 31, 2019 Dec 31, 2019 Dec 31, 2019 Income Summary Account No. 399 Fees Income Account No. 401 Date Debit Credit Balance Date Debit Credit Balance Dec 31, 2019 Dec 31, 2019 Dec 31, 2019 Dec 31, 2019 Dec 31, 2019 Advertising Expense Account No. 511 Depreciation Expense—Equipment Account No. 514 Date Debit Credit Balance Date Debit Credit Balance Dec 31, 2019 Dec 31, 2019 Dec 31, 2019 Dec 31, 2019 Rent Expense Account No. 517 Salaries Expense Account No. 519 Date Debit Credit Balance Date Debit Credit Balance Dec 31, 2019 Dec 31, 2019 Dec 31, 2019 Dec 31, 2019 Utilities Expense Account No. 523 Date Debit Credit Balance Dec 31, 2019 Dec 31, 2019

Required 1

What is the balance of the salaries expense account after closing entries are posted?

	Salaries expense

Answer 1

Before Preparing Closing Entries we need to Preparing Income Statement and Owner's Equity Statement:-

Gonzalez Company

Income Statement

For the Month Ended December 31,2019

Accounts Title	Amount	Amount
Fees Income		$114,960
Less:- Expenses:-
Advertising Expense	$3,900
Depreciation Expense, Equipment	810
Rent Expense	2,700
Salaries Expense	19,800
Utilities Expense	5,820
Total Expenses		$(33,030)
Net Income		$81,930

Gonzalez Company

Statement of Owner's Equity

For the Month Ended December 31,2019

Accounts Title	Amount
Emilio Gonzalez, Capital (12/1/2019)	$46,620
Add:- Net Income	81,930
	$128,550
Less:- Emilio Gonzalez, Drawing	(6,300)
Emilio Gonzalez, Capital (12/31/2019)	$122,250

Preparing Closing Entries:-

Gonzalez Company

General Journal (Closing Entries)

For the Month Ended December 31,2019

Date	Accounts Title and Explanation	Debit	Credit
December 31	Fees Income	$114,960
	Income Summary		$114,960
	(To close Revenue account)
December 31	Income Summary	$33,030
	Advertising Expense		$3,900
	Depreciation Expense, Equipment		$810
	Rent Expense		$2,700
	Salaries Expense		$19,800
	Utilities Expense		$5,820
	(To close Expenses accounts)
December 31	Income Summary	$81,930
	Emilio Gonzalez, Capital		$81,930
	(To close Income Summary)
December 31	Emilio Gonzalez, Capital	$6,300
	Emilio Gonzalez, Drawing		$6,300
	(To close Drawings Account)

Posting the Closing Entries to the General Ledger Accounts:-

Emilio Gonzalez, Capital

Account No. -301

Date	Debit	Credit	Balance
December 31		$46,620	$46,620
December 31		$81,930	$128,550
December 31	$6,300		$122,250

Emilio Gonzalez, Drawing

Account No. -302

Date	Debit	Credit	Balance
December 31	$6,300		$6,300
December 31		$6,300	$0

Income Summary

Account No. -399

Date	Debit	Credit	Balance
December 31		$114,960	$114,960
December 31	$33,030		$81,930
December 31	$81,930		$0

Fees Income

Account No. -401

Date	Debit	Credit	Balance
December 31		$114,960	$114,960
December 31	$114,960		$0

Advertising Expense

Account No. -511

Date	Debit	Credit	Balance
December 31	$3,900		$3,900
December 31		$3,900	$0

Depreciation Expense, Equipment

Account No. -514

Date	Debit	Credit	Balance
December 31	$810		$810
December 31		$810	$0

Rent Expense

Account No. -517

Date	Debit	Credit	Balance
December 31	$2,700		$2,700
December 31		$2,700	$0

Salaries Expense

Account No. -519

Date	Debit	Credit	Balance
December 31	$19,800		$19,800
December 31		$19,800	$0

Utilities Expense

Account No. -523

Date	Debit	Credit	Balance
December 31	$5,820		$5,820
December 31		$5,820	$0

The balance of the Salaries Expense Account after Closing Entries are posted is zero. Because we closed the Salaries Expense Account into the Income Summary.