Paradigm College Accounting 5th Edition - Problem 5-1B

Objective: To journalize closing entries from account balances

After the adjusting entries for Hugo Grimaldi, MD, were posted, his ledger contained the following account balances as of May 31, 20X1:

Account Balance

Cash $25,500

Accounts Receivable 2,500

Office Supplies 2,000

Equipment 34,500

Accumulated Depreciation - Equipment 4,200

Accounts Payable 8,000

Salaries Payable 1,200

Hugo Grimaldi, Capital 44,755

Hugo Grimaldi, Drawing 27,000

Income Summary --

Medical Fees Earned 75,500

Salaries Expense 28,300

Rent Expense 6,000

Depreciation Expense - Equipment 1,500

Utilities Expense 3,800

Telephone Expense 980

Office Supplies Expense 575

Directions: Journalize the closing entries. Net income is $34,345.

The General Journal form has the following columns: date, account title, debit, and credit.