Prepare closing entries for Happy Dooty Enterprises as of 12/31of the current ye
ID: 2380940 • Letter: P
Question
Prepare closing entries for Happy Dooty Enterprises as of 12/31of the current year based on the following information
from selected accounts from the adjusted trial balance. What is the net income and ending capital balance?
Supplies 40,000
Prepaid Rent 7,000
Equipment 90,000
Capital 1/1 106,000
Drawing 4,000
Revenue 84,000
Wages Expense 32,000
Rent Expense 5,000
Depreciation Expense 8,000
Supply Expense 4,000
Insurance Expense 7,000
Cash 24,000
Accts Receivable 12,000
Accum Depreciation - Equipment 16,000
Accts Payable 5,000
Wages Payable 4,000
Note Payable 18,000
Explanation / Answer
PARTICULARS DEBIT CREDIT Revenue A/C 84000 To Profit-or-Loss A/C 84000 Profit-or-Loss A/C 56000 To Wage Expenses A/C 32000 To Rent Expenses A/C 5000 To Depreciation Expenses A/C 8000 To Supply Expenses A/C 4000 To Insurance Expenses A/C 7000 Profit-or-Loss A/C 28000 To Capital A/C 28000 [Net Income] STATEMENT OF CAPITAL AMOUNT Opening Balance 10600 (+) Income 28000 (-) Drawings 4000 CLOSING BALANCE 34600