Consumer Research Associates, owned by Sam Hill, is retained by large companies to test consumer reaction to

Question:

Consumer Research Associates, owned by Sam Hill, is retained by large companies to test consumer reaction to new products. On January 31, 2016, the firm’s worksheet showed the following adjustments data:
(a) Supplies used, $2,340;
(b) Expired rent, $13,000;
(c) Depreciation on office equipment, $4,580.
The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the section of the worksheet are given below:
REVENUE AND EXPENSE ACCOUNTS
401 Fees Income ..............$100,000 Cr.
511 Depr. Expense—Office Equipment ..... 4,580 Dr.
514 Rent Expense ............. 13,000 Dr.
517 Salaries Expense ............ 49,500 Dr.
520 Supplies Expense ............ 2,340 Dr.
523 Telephone Expense ............ 1,350 Dr.
526 Travel Expense ............. 10,390 Dr.
529 Utilities Expense ............ 1,250 Dr.
DRAWING ACCOUNT
302 Sam Hill, Drawing ........... 11,000 Dr.

INSTRUCTIONS
1. Record the adjusting entries in the general journal, page 3.
2. Record the closing entries in the general journal, page 4.
Analyze: What closing entry is required to close a drawing account?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...