The following account names appear in the chart of accounts of Larkin’s Department Store. 

Instructions

Use the form in your working papers to answer the following questions about each account. Assume that all accounts have normal balances.

1. Is the account affected by a closing entry?

2. During closing, is the account debited or credited?

3. During closing, is Income Summary debited or credited?

Transcribed Image Text:

Accounts Receivable Bankcard Fees Expense Capital Stock Cash in Bank Equipment Fed. Corp. Income Tax Expense Fed. Corp. Income Tax Payable Income Summary Insurance Expense Merchandise Inventory Miscellaneous Expense Prepaid Insurance Purchases Purchases Discounts Purchases Returns and Allowances Retained Earnings Sales Sales Discounts Sales Returns and Allowances Sales Tax Payable Supplies Supplies Expense Transportation In Utilities Expense