Question

The following are T-accounts for Jones’s Consulting with the balances provided.

Asset
Dec. 31	142,000

Liabilities
		51,000	Dec.31

  

Marcy Jones, Capital
		71,800	Dec. 31

Rent Expense
Dec. 31	9,100

Marcy Jones, Withdrawals
Dec. 31	38,000

Salaries Expense
Dec. 31	27,000

Income Summary

Insurance Expense
Dec. 31	1,500

Services Revenue
		103,000	Dec. 31

Depreciation Expense
Dec. 31	8,200

Required:
a. Prepare closing entries at December 31, 2020.

b. Post the journal entries to the T-accounts.

c. Prepare a post-closing trial balance.

Answer 1

Requirement a:

Date	Account title and explanation	Debit	Credit
Dec 31	Service revenue	103,000
	Income summary		103,000
	[To close revenue accounts]
Dec 31	Income summary	45,800
	Rent expense		9,100
	Salaries expense		27,000
	Insurance expnese		1,500
	Depreciation expense		8,200
	[To close expenses accounts]
Dec 31	Income summary [103000-45800]	57,200
	Marcy Jones, Capital		57,200
	[To close income summary account]
Dec 31	Marcy Jones, Capital	38,000
	Marcy Jones, Withdrawals		38,000
	[To close withdrawals account]

Requirement b:

Asset
Dec 31	142,000
Liabilities
		51,000	Dec 31
Marcy Jones,Capital
Dec 31	38,000	71,800	Dec 31
		57,200	Dec 31
		91,000	Dec 31
Rent expense
Dec 31	9,100	9,100	Dec 31
Marcy Jones, Withdrawals
Dec 31	38,000	38,000	Dec 31
Salaries expense
Dec 31	27,000	27,000	Dec 31
Income summary
Dec 31	103,000	45,800	Dec 31
		57,200	Dec 31
Insurance expense
Dec 31	1,500	1,500	Dec 31
Service revenue
Dec 31	103,000	103,000	Dec 31
Depreciation expense
Dec 31	8,200	8,200	Dec 31

Requirement c:

Post-closing trial balance
For the year ended December 31,2020
Account title	Debit	Credit
Asset	142,000
Liabilities		51,000
Marcy Jones,Capital		91,000
Total	142,000	142,000