Question

The ledger of Mai Company includes the following accounts with normal balances: D. Mai, Capital $10,100; D. Mai, Withdrawals $1,350; Services Revenue $24,000; Wages Expense $13,900; and Rent Expense $3,800.

Prepare the necessary closing entries from the available information at December 31.

Answer 1

Dec. 31

Dr Service Revenue $24,000

Cr Income Summary $24,000

Dec. 31

Dr Income Summary $17,700

Cr Wages expense $13,900

Cr Rent expense $3,800

Dec. 31

Dr Income Summary $6,300

Cr Retained Earnings $6,300

Dec 31

Dr Services Revenue $1,350

Cr D. Mai, Withdrawals $1,350

Step-by-step explanation:

Preparation of the necessary closing entries from the available information at December 31.

General Journal

Dec. 31

Dr Service Revenue $24,000

Cr Income Summary $24,000

Dec. 31

Dr Income Summary $17,700

($13,900+$3,800)

Cr Wages expense $13,900

Cr Rent expense $3,800

Dec. 31

Dr Income Summary $6,300

Cr Retained Earnings $6,300

($24,000-$17,700)

Dec 31

Dr Services Revenue $1,350

Cr D. Mai, Withdrawals $1,350