FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Directions: complete the Income Summary t-account. Use the closing entries
provided to determine the appropriate amounts for A, B, and C. C represents the total
amount in Income Summary after closing. Add your answers in t-account below.
Remember, the starting/ending balance of the Income Summary temporary account
is zero. A dash (-) represents zero. Complete the income summary T-account.
Transcribed Image Text:relve Lesson Activity Two
GENERAL JOURNAL
PAGE
GENERAL
DEBIT
DOC.
POST.
DATE
ACCOUNT TITLE
NO.
REF.
CREDIT
1 June
Adjusting Entries
1,489.00
30 Supplics Expense
Supplies
2
1,489.00
3
30 Insurance Expense
750.00
4
750.00 s
5
Prepaid Insurance
Closing Entries
30 Sales
8,772.00
Income Summary
8,772.00
30 Income Summary
5,230.00
1,000.00 10
Advertising Expense
Insurance Expense
Miscellaneous Expense
10
750.00 1
11
216.00 12
12
1,000.00 13
Rent Expense
Supplies Expense
Utilities Expense
13
1,489.00 14
775.00 15
14
15
30 Income Summary
3,542.00
16
16
3,542.00 17
Jack Black, Capital
30 Jack Black, Capital
Jack Black, Drawing
17
1,750.00
18
18
1,750.00 19
19
20
20
Transcribed Image Text:Income Summary
Debit
Credit
8,772.00
А:
В:
C:
In the area below explain how the Income Summary account is used in the closing
process.
nt tao
B:
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- balance. Use the closing entry numbers as posting references to post each closing entry to the relevant accounts, then compute the ending balance of each account Label the ending balances with End. Bal. (For accounts with a 50 ending balance, select "End. Bal." and enter "0" on the normal balance side of the t-account.) Review the closing entries you prepared above. Adj. Bal. Closing entry 1 End. Bal. Adj. Bal Closing entry 1 End. Bal. Adj. Bal Closing entry 1 End. Bal. Closing entry 1 Closing entry 2 End. Bal. Closing entry 1 Closing entry 2 End. Bal. Cash 1,734,900 0 0 Supplies 250,000 0 0 360,000 0 0 Equipment 0 0 Accounts Payable 1,275,000 1,734,000 0 0 280.000 0 Closing entry 2 O Closing entry 3 End. Bal. 250,000 Wages Payable 0 Closing entry 2 0 Closing entry 3 End. Bal. 0 Closing entry 2 0 Closing entry 3 360,000 End. Bal. 1,275,000 Adj. Bal. 0 Closing entry 3 0 End. Bal. 280,000 Adj. Bal. 0 Closing entry 3 0 End. Bal. Adj. Bal. Closing entry 1 End. Bal. Adj. Bal. Closing entry…arrow_forwardWhich of these accounts is (are) credited during the closing process? Sales Revenue onlySales Returns and Allowances onlyInterest Revenue onlySales Revenue, Sales Returns and Allowances, and Interest Revenuearrow_forwardPlease help me with show all calculation thankuarrow_forward
- Identify the normal balance, financial statement, method of increasing the account, and whether the account is closed at the end of the period by selecting the letter that best describes those attributes. Answer choices may be used once, more than once, or not at all. Cash ·Debit, Balance Sheet, Debit, No Interest Payable 2. Credit, Balance Sheet, Credit, No v Trademark 3. Credit, Income Statement, Credit, Yes 4. Fees Earned Credit, Balance Sheet, Debit, Yes Inventory 5. Credit, Income Statement, Debit, No v Accumulated Depreciation 6. Debit, Balance Sheet, Credit, Yes Cost of Goods Sold 7. Debit, Income Statement, Credit, No v Gain on Sale of Investments 8. Credit, Income Statement, Credit, No Land 9. Debit, Income Statement, Debit, Yes v Dividends Payable Premium on Bonds Payable Loss on Write-Down of Inventory to LCNRV Retained Earnings v Goodwill V Depreciation Expensearrow_forwardIdentify the type of account (Asset, Liability, Equity, Revenue, Expense), normal balance (Debit, Credit), financial statement (Balance Sheet, Income Statement), and whether the account is closed at the end of the period (Yes, No) by selecting the letter that best describes those attributes. If an account is a contra or adjunct account, the answer will show the account type in parentheses. Answer items may be used once, more than once, or not at all. Retained Earnings 1. Equity, Credit, Balance Sheet, No 2. Freight-Out Liability, Credit, Balance Sheet, No V Loss on Impairment of Intangible Assets 3. Expense, Debit, Income Statement, Yes 4. Gain on Acquisition of Business (Equity), Debit, Balance Sheet, No 5. Amortization of Copyrights Asset, Debit, Income Statement, Yes Allowance for Doubtful Accounts 6. Expense or Loss, Credit, Income Statement, Yes Land 7. Revenue or Gain, Credit, Income Statement, Yes Federal Income Tax Withheld 8. (Revenue or Gain), Debit, Income Statement, Yes…arrow_forwardT-accounts and determine the final balance in each account balance. (Note: Posting to the Cash account is not required.) Prepaid Insurance choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose the end date of the accounting period enter a debit balance choose the end date of the accounting period enter a credit balance Prepaid Rent choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose the end date of the accounting period…arrow_forward
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