The following financial information has been collected for Forest Ltd for the month of December 2020. Accounts
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Question:
The following financial information has been collected for Forest Ltd for the month of December 2020.
Accounts | Balance |
Cash | 45,250 |
Inventory | 88,750 |
Prepaid expenses | 3,560 |
interest expense | 1,200 |
Interest revenue | 2,650 |
Sales revenue | 880,500 |
Insurance expense | 32,000 |
Supplies | 4,560 |
Supplies expense | 6,340 |
Owner's drawings | 3,500 |
salary expense | 25,400 |
COGS | 560,800 |
Unearned revenue | 25,700 |
Required: Calculate in the net income of Forest Ltd for the Month ending December 31, 2020.
Question 3 (B) (7.5 marks)
ABB company has the below information in its Income Statement at the end of the year 2021. For recording the closing entries, Income Summary account is created and used.
- Salaries Expenses $34,800
- Utilities Expenses $8,500
- Depreciation Expense $4,500
- Owner’s drawings $3,000
- Owner’s capital $105,000
- service revenue $345,600
Based on the above information, provide the closing entries.
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