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The ledger of Mai Company includes the following accounts with normal balances as of December 31:...

The ledger of Mai Company includes the following accounts with normal balances as of December 31: D. Mai, Capital $10,900; D. Mai, Withdrawals $1,750; Services Revenue $32,000; Wages Expense $17,900; and Rent Expense $5,400.

Prepare its December 31 closing entries.

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Closing Entries
Date Accounts and Explanations Debit Credit
31-Dec Service revenue $32,000.00
               Income Summery $32,000.00
(Revenue accounts closed)
31-Dec Income Summery $23,300.00
Wages expense $17,900.00
Rent expense $5,400.00
(Expenses Accounts closed)
31-Dec Income Summery $8,700.00
D. Mai, Capital $8,700.00
(Income summery transferred to capital)
31-Dec D. Mai, Capital $1,750.00
D. Mai, Withdrawals $1,750.00
(To close withdrawal account)

ekkarill92 answered 3 years ago
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