The worksheet for Major Advising to complete this exercise is as follows.

Major Advising Work Sheet (Partial) For Month Ended January 31, 20 --
	Income Statement		Balance Sheet
Account Title	Debit	Credit	Debit	Credit
Cash			1,349
Accounts Receivable			920
Supplies			339
Prepaid Insurance			876
Office Equipment			3,540
Accum. Depr.—Office Equipment				193
Accounts Payable				1,026
Wages Payable				303
Ed Major, Capital				4,086
Ed Major, Drawing			864
Advising Fees		4,175
Wages Expense	673
Advertising Expense	90
Rent Expense	523
Supplies Expense	152
Phone Expense	71
Electricity Expense	43
Insurance Expense	83
Gas and Oil Expense	47
Depr. Expense—Office Equipment	193
Miscellaneous Expense	20
	1,895	4,175	7,888	5,608
Net Income	2,280			2,280
	4,175	4,175	7,888	7,888

A chart of accounts is provided below.

Chart of Accounts
Assets			Revenues
101	Cash		401	Advising Fees
122	Accounts Receivable
141	Supplies		Expenses
145	Prepaid Insurance		511	Wages Expense
181	Office Equipment		512	Advertising Expense
181.1	Accum. Depr.—Office Equip.		521	Rent Expense
			524	Supplies Expense
Liabilities			525	Phone Expense
202	Accounts Payable		533	Electricity Expense
219	Wages Payable		535	Insurance Expense
			538	Gas and Oil Expense
			541	Depr. Exp.—Office Equip.
Owner’s Equity			549	Miscellaneous Expense
311	Ed Major, Capital
312	Ed Major, Drawing
313	Income Summary

1. Prepare the closing entries. If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 2.

2. Post the closing entries to the T accounts. If there is more than one closing entry for an account, enter in the order given in the journal. Then complete the posting in part 1.

Answer rating: 100% (QA)

Closing entries are those entries w... View the full answer