Exercise 4-07 a-b (Video) Cullumber Company had the following adjusted trial bal
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Question
Exercise 4-07 a-b (Video) Cullumber Company had the following adjusted trial balance Cullumber Company Adjusted Trial Balance For the Month Ended June 30, 2020 Adjusted Trial Balance Debit Account Titles Credit $3,500 4,100 600 Cash Accounts Receivable Supplies Accounts Payable Unearned Service Revenue Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Miscellaneous Expense Supplies Expense Salaries and Wages Payable $1,500 140 4,500 530 5,870 1,200 320 2,390 630 $12,640 $12,640 Prepare closing entries at June 30, 2020. (Credit account titles are automatically indented wExplanation / Answer
Closing Entries
no.
Account title and explanation
Debit
Credit
1
Service revenue
$ 5,870.00
Income Summery
$ 5,870.00
(to close revenue Account)
2
Income Summery
$ 5,870.00
Salaries and wages expense
$ 1,200.00
Miscellaneous expense
$ 320.00
Supplies Expense
$ 2,390.00
(To close expense account)
3
Income summery
$ 1,960.00
Owner's capital
$ 1,960.00
(To close net income /(loss)
4
Owner's capital
$ 530.00
Owner's Drawings
$ 530.00
(To close Owner's drawings account)
CULLUMBER COMPANY
Post-Closing trial balance
for the month ended June 30, 2020
Debit
Credit
Cash
$ 3,500.00
Accounts Receivables
$ 4,100.00
Supplies
$ 600.00
Accounts payables
$ 1,500.00
Unearned Service revenue
$ 140.00
Owner's capital
$ 5,930.00
Salaries and wages payable
$ 630.00
Totals
$ 8,200.00
$ 8,200.00
Owner’s capital ending balance = Opening balance +profits-drawings
Owner’s capital ending balance = $4500+1960-530
Owner’s capital ending balance =$5930
Closing Entries
no.
Account title and explanation
Debit
Credit
1
Service revenue
$ 5,870.00
Income Summery
$ 5,870.00
(to close revenue Account)
2
Income Summery
$ 5,870.00
Salaries and wages expense
$ 1,200.00
Miscellaneous expense
$ 320.00
Supplies Expense
$ 2,390.00
(To close expense account)
3
Income summery
$ 1,960.00
Owner's capital
$ 1,960.00
(To close net income /(loss)
4
Owner's capital
$ 530.00
Owner's Drawings
$ 530.00
(To close Owner's drawings account)
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