Research Associates, owned by Alex Raman, is retained by large companies to test consumer reaction to new products. On January 31, 20X1, 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 Balance Sheet section of the worksheet are given below:

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?

Transcribed Image Text:

REVENUE AND EXPENSE ACCOUNTS 401 Fees Income 511 Depr. Expense-Office Equipment 514 Rent Expense 517 Salaries Expense 520 Supplies Expense 523 Telephone Expense 526 Travel Expense 529 Utilities Expense DRAWING ACCOUNT 302 Alex Raman, Drawing $109,800 Cr. 4,580 Dr. 13,000 Dr. 49,500 Dr. 2,340 Dr. 1.350 Dr. 10,390 Dr. 1,250 Dr. 11,000 Dr.