CLOSING ENTRIES Below is the Adjusted Trial Balance for ABL COMPANY: ABL COMPANY
ID: 2419490 • Letter: C
Question
CLOSING ENTRIES
Below is the Adjusted Trial Balance for ABL COMPANY:
ABL COMPANY
Adjusted Trial Balance
December 31, 2011
DR
CR
Accounts Payable
39,400
Accounts Receivable
103,300
Accumulated Amortization - Office Equipment
246,000
Advertising Expense
27,000
Amortization Expense - Office Equipment
72,000
Cash
72,800
Consulting Fees Earned
1,045,000
Dividends
85,000
Interest Expense
27,400
Interest Income
12,000
Interest Payable
7,500
Note Payable
225,000
Office Equipment
750,000
Office Rent Expense
231,000
Office Salary Expense
275,300
Office Supplies
6,200
Office Supplies Expense
22,900
Prepaid Rent
17,500
Retained Earnings
187,500
Salaries Payable
5,700
Unearned Revenue
8,500
Utilities Expense
86,200
Totals
1,776,600
1,776,600
1) Produce all required closing entries for December 31, 2011 on the following page. Note that journal entry explanations are not required
Date
Account
Debit
Credit
ABL COMPANY
Adjusted Trial Balance
December 31, 2011
DR
CR
Accounts Payable
39,400
Accounts Receivable
103,300
Accumulated Amortization - Office Equipment
246,000
Advertising Expense
27,000
Amortization Expense - Office Equipment
72,000
Cash
72,800
Consulting Fees Earned
1,045,000
Dividends
85,000
Interest Expense
27,400
Interest Income
12,000
Interest Payable
7,500
Note Payable
225,000
Office Equipment
750,000
Office Rent Expense
231,000
Office Salary Expense
275,300
Office Supplies
6,200
Office Supplies Expense
22,900
Prepaid Rent
17,500
Retained Earnings
187,500
Salaries Payable
5,700
Unearned Revenue
8,500
Utilities Expense
86,200
Totals
1,776,600
1,776,600
Explanation / Answer
Closing entries for ABL Company are as follows:
Date
Particulars
L.F
Debit
Credit
2011
$
$
Dec-31
Income summary
748,000
Office Rent expense
231,000
Office salary expense
275,300
Office Supplies
6,200
Office supplies expense
22,900
Utilities expense
86,200
Advertising Expense
27,000
Amortization Expense – Office Equipment
72,000
Interest Expense
27,400
(For closing balances recorded)
Dec-31
Consulting fees earned
1,045,000
Interest Income
12,000
Income summary
1,057,000
(For closing balances recorded)
Dec-31
Income summary
309,000
Retained Earnings
309,000
(For Profit transferred to retained earnings)
Dec-31
Retained earnings
85,000
Dividends
85,000
(For dividends transferred to retained earnings account)
Date
Particulars
L.F
Debit
Credit
2011
$
$
Dec-31
Income summary
748,000
Office Rent expense
231,000
Office salary expense
275,300
Office Supplies
6,200
Office supplies expense
22,900
Utilities expense
86,200
Advertising Expense
27,000
Amortization Expense – Office Equipment
72,000
Interest Expense
27,400
(For closing balances recorded)
Dec-31
Consulting fees earned
1,045,000
Interest Income
12,000
Income summary
1,057,000
(For closing balances recorded)
Dec-31
Income summary
309,000
Retained Earnings
309,000
(For Profit transferred to retained earnings)
Dec-31
Retained earnings
85,000
Dividends
85,000
(For dividends transferred to retained earnings account)