In: Accounting
The ledger of Cranston Corporation has the following account balances at the company's first year end of October 31, 2018.
Accounts payable | $ 3,210 | Prepaid rent | $ 3,070 | |
Accounts receivable | 4,810 | Rent expense | 730 | |
Accumulated depreciation | 5,250 | Salaries expense | 7,060 | |
Bank loan payable | 7,300 | Salaries payable | 1,310 | |
Cash | 17,160 | Service revenue | 13,730 | |
Common shares | 22,300 | Supplies | 2,400 | |
Depreciation expense | 1,750 | Supplies expense | 630 | |
Dividends declared | 420 | Unearned revenue | 3,020 | |
Equipment | 17,500 | Utilities expense | 500 | |
Interest expense | 300 | |||
Interest payable | 210 |
Prepare the closing entries at October 31, 2018.
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Date |
General Journal |
Debit |
Credit |
Oct.31, 2018 |
To close all the expense account to Income Summary Statement |
||
Income Summary Statement |
$8,090 |
||
Interest Expense |
$300 |
||
Rent Expense |
$730 |
||
Salaries Expense |
$7,060 |
||
Supplies Expense |
$630 |
||
Utilities Expense |
$500 |
||
(To close expense accounts) |
|||
Oct.31, 2018 |
To Close all the revenue account to Income Summary |
||
Service Revenue |
$13,730 |
||
Income Summary Statement |
$13,730 |
||
(To close revenue accounts) |
|||
Oct.31, 2018 |
Income Summary Statement (13,730 - 890) |
$12,840 |
|
Capital |
$345 |
||
(To close income summary statement and transfer the profit to capital) |
|||
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