In: Accounting
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.
Solution
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) |