E4: Chapter 4 Completing the Accounting Cycle (10 Points)

Given the following adjusted trial balance, journalize and post the second closing entry to close expenses. The first closing entry to close revenues has already been journalized and posted. The partial General Ledger is found on the second page. Remember to use the Date and PR columns in both the Journal and the Ledger.

Acct	Account Title	DR	CR
100	Cash	700
110	Accounts Receivable	800
120	Supplies	100
200	Accounts Payable		500
300	Owners Capital		900
310	Owners Drawing	400
400	Service Revenue		1,100
510	Supplies Expense	300
520	Rent Expense	200
	Total	2,500	2,500

General Journal

				Page 5
Date	Account Titles and Explanation	PR	Debit	Credit
2015	Closing Entries
12/31	Service Revenue	400	1,100
	Income Summary	900		1,100

Partial General Ledger

			Service Revenue	ACCT	400
Date
2015	Explanation	PR	Debit	Credit	Balance
12/31	Adjusted Balance	G1-4		1,100	1,100
12/31	Closing	G5	1,100		0

			Supplies Expense	ACCT	510
Date
2015	Explanation	PR	Debit	Credit	Balance
12/31	Adjusted Balance	G1-4	300		300

				Rent Expense	ACCT	520
Date
2015	Explanation		PR	Debit	Credit	Balance
12/31	Adjusted Balance		G1-4	200		200

			Income Summary	ACCT	900
Date
2015	Explanation	PR	Debit	Credit	Balance
12/31	Close Revenues	G5		1,100	1,100