Identifying and journalizing closing entries
SuperClassIdentifying and journalizing closing entries
Gunther recorded the following transactions and year-end adjustments during 2012:
Journal Entry | ||
Accounts and Explanations | Debit | Credit |
Prepaid rent | 8,000 | |
Cash | 8,000 | |
Prepaid the annual rent. | ||
Rent expense | 5,100 | |
Prepaid rent | 5,100 | |
Adjustment to record rent expense for the year. | ||
Cash | 4,200 | |
Unearned service revenue | 4,200 | |
Collected cash in advance of service revenue to be earned. | ||
Unearned service revenue | 4,700 | |
Service revenue | 4,700 | |
Adjustment to record revenue earned. | ||
Requirements
1. Assuming that there were no other service revenue and rent expense transactions during 2012, journalize Gunther’s closing entries at the end of 2012.
2. Open T-accounts for Service revenue and Rent expense. Post the closing entries to these accounts. What are their balances after closing?
10 years ago
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identifying_and_journalizing_closing_entries.xlsx
