Question

Problem 3 Supp-1

Preparation of Closing Entries

Salinas Trailer Rental, Inc., rents small trailers by the day for local moving jobs. Its adjusted trial balance at the end of the current fiscal year follows.

1. From the information given, record closing entries. For a compound transaction, if an amount box does not require an entry, leave it blank.

2014 June 30

To close the revenue account

June 30

To close the expense accounts

June 30

To close the Income Summary account

June 30

 

To close the Dividends account

Salinas Trailer Rental, Inc.

Adjusted Trial Balance

June 30, 2014

Cash

1,384

 

Accounts Receivable

1,944

 

Supplies

238

 

Prepaid Insurance

720

 

Trailers

24,000

 

Accumulated Depreciation – Trailers

 

14,400

Accounts Payable

 

542

Wages Payable

 

400

Common Stock

 

10,000

Retained Earnings

 

1,388

Dividends

14,400

 

Trailer Rentals Revenue

 

91,092

Wages Expense

46,800

 

Insurance Expense

1,440

 

Supplies Expense

532

 

Depreciation Expense – Trailers

4,800

 

Other Expenses

21,564

 

 

117,822

117,822

     

 



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *