Chapter 4 Financial Statement Problem

Completing the income statement columns and preparing closing entries

These Income Statement columns from a 10-column work sheet are for Browns Bike Rental Company.

Account Title	Debit		Credit
Rent earned			143,000
Salaries expense	63,492
Insurance expense	9,009
Office supplies expense	21,021
Bike repair expense	4,433
Depreciation expenseBikes	27,313

(1) Determine the amount that should be entered on the net income line of the work sheet. (2) Prepare the company's closing entries. The owner, H. Brown, did not make any withdrawals this period.

Determine the amount that should be entered on the net income line of the work sheet.

Net income

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(you can replace the xs with your answer)

Prepare the company's closing entries. The owner, H. Brown, did not make any withdrawals this period.

No	Transaction	General Journal	Debit	Credit
A	1
B	2
C	3