Question

Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accounts have normal balances).

General Ledger
M. Muncel, Capital			Acct. No. 301				Salaries Expense			Acct. No. 622
Date	PR	Debit	Credit	Balance			Date	PR	Debit	Credit	Balance
May 31	G2			83,000			May 31	G2			41,500
M. Muncel, Withdrawals			Acct. No. 302				Insurance Expense			Acct. No. 637
Date	PR	Debit	Credit	Balance			Date	PR	Debit	Credit	Balance
May 31	G2			48,000			May 31	G2			3,900
Services Revenue			Acct. No. 401				Rent Expense			Acct. No. 640
Date	PR	Debit	Credit	Balance			Date	PR	Debit	Credit	Balance
May 31	G2			146,246			May 31	G2			8,400
Depreciation Expense			Acct. No. 603				Income Summary			Acct. No. 901
Date	PR	Debit	Credit	Balance			Date	PR	Debit	Credit	Balance
May 31	G2			15,000

1. Prepare closing journal entries from the above ledger accounts.
2. Post the entries from Requirement 1 to the General Ledger accounts below. Use the transaction number from Requirement 1 as the date.

Answer 1

Date	Accounts	debit	credit
May-31	Service revenue	146246
	Income summary		146246
May-31	Income summary	68800
	Depreciation expense		15000
	Salaries expense		41500
	Insurance expense		3900
	Rent expense		8400
May-31	Income summary	77,446
	M.Muncel Capital		77446
May-31	M.Muncel Capital	48000
	M.Muncel Withdrawals		48000

M.Muncel Capital
Date	PR	Debit	credit	Balance
May-31				83000
May-31	Closing		77446	160446
May-31	Closing	48000		112,446
M.Muncel Withdrawals
Date	PR	Debit	credit	Balance
May-31				48000
May-31	Closing		48000	0
Service revenue
Date	PR	Debit	credit	Balance
May-31				416246
May-31	Closing	416246		0
Depreciation expense
Date	PR	Debit	credit	Balance
May-31				15000
May-31	Closing		15000	0

Salaries expense
Date	PR	Debit	credit	Balance
May-31				41500
May-31	Closing		41500	0
Insurance expense
Date	PR	Debit	credit	Balance
May-31				3900
May-31	Closing		3900	0
Rent expense
Date	PR	Debit	credit	Balance
May-31				8400
May-31	Closing		8400	0
Income summary
Date	PR	Debit	credit	Balance
May-31	Closing		146246	146246
May-31	Closing	66800		77,446
May-31	Closing	77,446		0

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