Income summary - the debit side of closing balances
Hello - this is my first time out here... I have an accounting question on income summary... I just can't get the debit side of it, I will try to send it along and if anyone can help me find my missing blanks... I have most of it done, just cant't get the income summary right, I hope it goes through... thanks... sooo much..
Adjusted Trial Balance
July 31, 2005
No. Account Titles Debits Credits
101 Cash $14,840
112 Accounts Receivable 8,780
157 Equipment 15,900
167 Accumulated Depreciation $5,400
201 Accounts Payable 4,220
208 Unearned Rent Revenue 1,800
301 C. J. Lanza, Capital 45,200
306 C. J. Lanza, Drawing 16,000
404 Commission Revenue 67,000
429 Rent Revenue 6,500
711 Depreciation Expense 4,000
720 Salaries Expense 55,700
732 Utilities Expense 14,900
130,120 130,120
Instructions
(a) Prepare the closing entries.
General Journal
J15
Date Account Titles and explanation Ref. Debit Credit
July 31 Commission Revenue 404 67,000
Rent Revenue 429 6,500
Income Summary 350 73,500
31 Income Summary 350 74,600
Salaries Expense 720 55,700
Utilities Expense 732 14,900
Depreciation Expense 711 4,000
31 C. J. Lanza, Capital 301
Income Summary 350
31 C. J. Lanza, Capital 301
C. J. Lanza, Drawing 306 16,000
(b) Post to C. J. Lanza, Capital and No. 350 Income Summary accounts.
C. J. Lanza, Capital No. 301
Date Explanation Ref. Debit Credit Balance
July 31 Balance 45,200
31 Close net loss J15
31 Close drawing J15 16,000
Income Summary No. 350
Date Explanation Ref. Debit Credit Balance
July 31 Close revenue J15
31 Close expense J15 74,600 ( )
31 Transfer net loss J15 0
(c) Prepare a post-closing trial balance at July 31.
LANZA COMPANY
Post-Closing Trial Balance
July 31, 2005
Debit
Credit
Cash $14,840
Accounts Receivable 8,780
Equipment 15,900
Accumulated Depreciation $ 5,400
Accounts Payable 4,220
Unearned Rent Revenue 1,800
C. J. Lanza, Capital 28,100
$ 39,520
$ 39,520
