Question

On December 31, after adjustments, Gomez Company’s ledger contains the following account balances:
101 Cash ................. $47,200 Dr.
111 Accounts Receivable .......... 17,800 Dr.
121 Supplies ............... 4,000 Dr.
131 Prepaid Rent ............. 40,600 Dr.
141 Equipment .............. 64,000 Dr.
142 Accumulated Depreciation—Equip. .... 2,000 Cr.
202 Accounts Payable ........... 8,500 Cr.
301 Andrea Gomez, Capital (12/1/2016) .... 65,620 Cr.
302 Andrea Gomez, Drawing ......... 8,200 Dr.


401 Fees Income ...............163,600 Cr.
511 Advertising Expense........... 5,800 Dr.
514 Depreciation Expense—Equip. ...... 1,000 Dr.
517 Rent Expense .............. 4,600 Dr.
519 Salaries Expense ........... 38,800 Dr.
523 Utilities Expense ........... 7,720 Dr.
INSTRUCTIONS
1. Record the balances in the ledger accounts as of December 31.
2. Journalize the closing entries in the general journal, page 4. Use account number 399 for the Income Summary Account.
3. Post the closing entries to the general ledger accounts.
Analyze: What is the balance of the Salaries Expense account after closing entries areposted?


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  • CreatedAugust 08, 2014
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