 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Correcting Entries
The question is: At the end of 2007 the company accrued salaries of $45 000 in excess of the correct amount.
Prepare the journal entry in 2008 to correct the books. The answer is: Sales Salaries Expense 45,000 Retained Earnings 45,000 I don't understand why... what is the closing entries again? I forgot. THanks in advance. |
||||
|
||||
|
Closing entries are journal entries at the end of a period to transfer the net effects of revenue and expense items from the income statement to owner's equity.
Your expense accounts are credited and your income summary account is debited. Next your revenue accounts are debited and your income summary account is credited. Next you close out you're your income summary account to retained earnings. This is done so that your temporary accounts (Income Statement Accounts) will have Zero balances at the start the new accounting period. The amounts are ultimately transferred to your permanent accounts (Balance Sheet accounts). |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
The purchase of supplies on account for $550 was debited to equipment $55 and credited to accounts payable $55
Which accounts would I use to correct an entry, where a bill was posted as being paid and later it was realized that the bill was paid with the owner's personal money?
Funds were entered into the wrong revenue account how do I correct this. The funds were receipted into a foreign revenue account and should have been received into a USD revenue account. How do I reverse and correct this? LiLi
1. A payment on account of $ 500 to a creditor was debited to accounts payable $320 and credited to cash $320 2. the purchase of supplies on account for $550 was debited to equipment $55 and credited to accounts payable $55 3. a $300 withdrawal of cash for r. Masi's personal use was debited...
View more questions Search
|
