Question
1-Jun Cash 50,000.00
Owners Equity 50,000.00
Owner contributed cash to the business
1-Jun Vehicle 15,000.00
Cash 15,000.00
Owner purchased a vehicle
3-Jun Cash 25,000.00
Notes Payable 25,000.00
owner took out a small business loan
5-Jun Rent Expense 1,195.00
Prepaid Rent 7,170.00
Cash 8,365.00
Owner paid rent for June and prepaid office rent
5-Jun Business License Expense 250.00
Cash 250.00
Owner paid business license fees
5-Jun Office Supplies 750.00
Accounts Payable 750.00
Owner ordered office supplies on account
6-Jun Accounts Receivable 1,000.00
Servoce Revenue 1,000.00
Owner performed service for a client on account
9-Jun Cash 750.00
Accounts Receivable 750.00
Service Revenue 1,500.00
Owner provided service for client(partial payment)
10-Jun Advertising Expense 250.00
Cash 250.00
Owner paid advertising costs
15-Jun Wages Expense 325.00
Wages Payable 325.00
Wages due to part-time employee
15-Jun Prepaod Insurance 750.00
Cash 750.00
Owner prepaid business insurance
20-Jun Wages Payable 325.00
Cash 325.00
Owner paid wages due to part-time employee
21-Jun Repairs and Maintenance Expense 210.00
Cash 210.00
Owner paid for plumbing repairs in the office
22-Jun Owners Draw 1,000.00
Cash 1,000.00
Owner withdrew cash for personal use
23-Jun CAsh 1,000.00
Accounts Receivable 1,000.00
Customer paid balance due from June 6 service
25-Jun Cash 800.00
Service Revenue 800.00
28-Jun Owner provided service to a client (pd at time of service)
Accounts Payable 750.00
Cash 750.00
Owner paid balance due for office supplies
29-Jun Accounts Receivable 2,225.00
Service Revenue 2,225.00
30-Jun Utilities Expense 155.00
Accounts Payable 155.00
Paid the telephone bill
30-Jun Wages Expense 325.00
Wages Payable 325.00
Wages owed to parti-time worker
30-Jun Depreciation Expense 250.00
Accumulated Depreciation 250.00
Record depreciation on vehicle
make closing entries
Owners Equity 50,000.00
Owner contributed cash to the business
1-Jun Vehicle 15,000.00
Cash 15,000.00
Owner purchased a vehicle
3-Jun Cash 25,000.00
Notes Payable 25,000.00
owner took out a small business loan
5-Jun Rent Expense 1,195.00
Prepaid Rent 7,170.00
Cash 8,365.00
Owner paid rent for June and prepaid office rent
5-Jun Business License Expense 250.00
Cash 250.00
Owner paid business license fees
5-Jun Office Supplies 750.00
Accounts Payable 750.00
Owner ordered office supplies on account
6-Jun Accounts Receivable 1,000.00
Servoce Revenue 1,000.00
Owner performed service for a client on account
9-Jun Cash 750.00
Accounts Receivable 750.00
Service Revenue 1,500.00
Owner provided service for client(partial payment)
10-Jun Advertising Expense 250.00
Cash 250.00
Owner paid advertising costs
15-Jun Wages Expense 325.00
Wages Payable 325.00
Wages due to part-time employee
15-Jun Prepaod Insurance 750.00
Cash 750.00
Owner prepaid business insurance
20-Jun Wages Payable 325.00
Cash 325.00
Owner paid wages due to part-time employee
21-Jun Repairs and Maintenance Expense 210.00
Cash 210.00
Owner paid for plumbing repairs in the office
22-Jun Owners Draw 1,000.00
Cash 1,000.00
Owner withdrew cash for personal use
23-Jun CAsh 1,000.00
Accounts Receivable 1,000.00
Customer paid balance due from June 6 service
25-Jun Cash 800.00
Service Revenue 800.00
28-Jun Owner provided service to a client (pd at time of service)
Accounts Payable 750.00
Cash 750.00
Owner paid balance due for office supplies
29-Jun Accounts Receivable 2,225.00
Service Revenue 2,225.00
30-Jun Utilities Expense 155.00
Accounts Payable 155.00
Paid the telephone bill
30-Jun Wages Expense 325.00
Wages Payable 325.00
Wages owed to parti-time worker
30-Jun Depreciation Expense 250.00
Accumulated Depreciation 250.00
Record depreciation on vehicle
make closing entries
Answers
GPT-4o mini
Closing entries are performed at the end of an accounting period to transfer the balances from temporary accounts (revenues and expenses) to permanent accounts (specifically, the owner's equity account). Here’s how to perform the closing entries based on the provided transactions for June:
### Step 1: Close the Revenue Accounts
You will close all revenue accounts by debiting them and crediting the Owner's Equity (Retained Earnings).
1. **Close Service Revenues**
- Debit: Service Revenue \( \$5,525.00 \) (Total of Service Revenue accounts: $1,000 + $1,500 + $800 + $2,225)
- Credit: Owner's Equity (Retained Earnings) \( \$5,525.00 \)
### Step 2: Close the Expense Accounts
You will close all expense accounts by crediting them and debiting the Owner's Equity (Retained Earnings).
2. **Close Expenses**
- **Wages Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$650.00 \) (Total of Wages Expenses: $325 + $325)
- Credit: Wages Expense \( \$650.00 \)
- **Rent Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$1,195.00 \)
- Credit: Rent Expense \( \$1,195.00 \)
- **Advertising Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$250.00 \)
- Credit: Advertising Expense \( \$250.00 \)
- **Repairs and Maintenance Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$210.00 \)
- Credit: Repairs and Maintenance Expense \( \$210.00 \)
- **Utilities Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$155.00 \)
- Credit: Utilities Expense \( \$155.00 \)
- **Business License Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$250.00 \)
- Credit: Business License Expense \( \$250.00 \)
- **Depreciation Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$250.00 \)
- Credit: Depreciation Expense \( \$250.00 \)
- **Wages Payable**
- Debit: Owner's Equity (Retained Earnings) \( \$325.00 \)
- Credit: Wages Payable \( \$325.00 \)
3. **Total Expenses:**
- Wages Expense: \( \$650.00 \)
- Rent Expense: \( \$1,195.00 \)
- Advertising Expense: \( \$250.00 \)
- Repairs and Maintenance Expense: \( \$210.00 \)
- Utilities Expense: \( \$155.00 \)
- Business License Expense: \( \$250.00 \)
- Depreciation Expense: \( \$250.00 \)
- Wages Payable: \( \$325.00 \)
### Summary of Entries
- Total Revenues: \( \$5,525.00 \)
- Total Expenses: \( \$3,025.00 \)
- Net Income: \( \$5,525.00 - \$3,025.00 = \$2,500.00 \)
### Step 3: Final Closing Entry
Finally, you would need to move the net income to the Owner's Equity.
4. **Close to Owner's Equity**
- Debit: Owner's Equity \( \$2,500.00 \)
- Credit: Owner's Equity (Retained Earnings) \( \$2,500.00 \)
### Final Closing Entries Summary:
1. Close Revenues to Owner’s Equity:
- Debit: Service Revenue \( \$5,525.00 \)
- Credit: Owner’s Equity \( \$5,525.00 \)
2. Close Expenses to Owner's Equity:
- Debit: Owner's Equity for each expense account as listed above.
- Credit: Each expense account as listed above.
3. Move Net Income to Owner's Equity:
- Debit: Owner's Equity \( \$2,500.00 \)
- Credit: Owner's Equity \( \$2,500.00 \)
After these entries, all temporary accounts (revenues and expenses) will have a zero balance, and the net income will be reflected in the Owner's Equity section.
### Step 1: Close the Revenue Accounts
You will close all revenue accounts by debiting them and crediting the Owner's Equity (Retained Earnings).
1. **Close Service Revenues**
- Debit: Service Revenue \( \$5,525.00 \) (Total of Service Revenue accounts: $1,000 + $1,500 + $800 + $2,225)
- Credit: Owner's Equity (Retained Earnings) \( \$5,525.00 \)
### Step 2: Close the Expense Accounts
You will close all expense accounts by crediting them and debiting the Owner's Equity (Retained Earnings).
2. **Close Expenses**
- **Wages Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$650.00 \) (Total of Wages Expenses: $325 + $325)
- Credit: Wages Expense \( \$650.00 \)
- **Rent Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$1,195.00 \)
- Credit: Rent Expense \( \$1,195.00 \)
- **Advertising Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$250.00 \)
- Credit: Advertising Expense \( \$250.00 \)
- **Repairs and Maintenance Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$210.00 \)
- Credit: Repairs and Maintenance Expense \( \$210.00 \)
- **Utilities Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$155.00 \)
- Credit: Utilities Expense \( \$155.00 \)
- **Business License Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$250.00 \)
- Credit: Business License Expense \( \$250.00 \)
- **Depreciation Expense**
- Debit: Owner's Equity (Retained Earnings) \( \$250.00 \)
- Credit: Depreciation Expense \( \$250.00 \)
- **Wages Payable**
- Debit: Owner's Equity (Retained Earnings) \( \$325.00 \)
- Credit: Wages Payable \( \$325.00 \)
3. **Total Expenses:**
- Wages Expense: \( \$650.00 \)
- Rent Expense: \( \$1,195.00 \)
- Advertising Expense: \( \$250.00 \)
- Repairs and Maintenance Expense: \( \$210.00 \)
- Utilities Expense: \( \$155.00 \)
- Business License Expense: \( \$250.00 \)
- Depreciation Expense: \( \$250.00 \)
- Wages Payable: \( \$325.00 \)
### Summary of Entries
- Total Revenues: \( \$5,525.00 \)
- Total Expenses: \( \$3,025.00 \)
- Net Income: \( \$5,525.00 - \$3,025.00 = \$2,500.00 \)
### Step 3: Final Closing Entry
Finally, you would need to move the net income to the Owner's Equity.
4. **Close to Owner's Equity**
- Debit: Owner's Equity \( \$2,500.00 \)
- Credit: Owner's Equity (Retained Earnings) \( \$2,500.00 \)
### Final Closing Entries Summary:
1. Close Revenues to Owner’s Equity:
- Debit: Service Revenue \( \$5,525.00 \)
- Credit: Owner’s Equity \( \$5,525.00 \)
2. Close Expenses to Owner's Equity:
- Debit: Owner's Equity for each expense account as listed above.
- Credit: Each expense account as listed above.
3. Move Net Income to Owner's Equity:
- Debit: Owner's Equity \( \$2,500.00 \)
- Credit: Owner's Equity \( \$2,500.00 \)
After these entries, all temporary accounts (revenues and expenses) will have a zero balance, and the net income will be reflected in the Owner's Equity section.