Exercise 4-8 Macirg closng entries The adjusted trial balance for Paddy\'s Cell
ID: 2414502 • Letter: E
Question
Exercise 4-8 Macirg closng entries The adjusted trial balance for Paddy's Cell Systems follows 2. Net lass, SE,900 PADDY'S CELL SYSTEMS Adjusted Trial Balance March 31, 2017 S 27,600 Prepaid rent Office equipment Accumulated amortization-office equipment Accounts Salaries payable Unearned service revenue T. O'Neill, capital P O'Neill, withdrawals Service revenue Salaries expense Rent expense 168,900 26,050 9,300 payable Utilities expense $290,500 $290.500 1. Journalize the closing entries of Paddy's Cell Systems at March 31, 2017 Include 2. How much net income or net s did Paddy's Cell Systems earn for March 2017 How can you tell? Part 1 The sic Sructure f AccountingExplanation / Answer
Answer
Date
Accounts Title
Debit
Credit
31-Mar-17
Service Revenue
$ 61,000.00
Income Summary
$ 61,000.00
(revenue account with credit balance closed by debiting it)
31-Mar-17
Income Summary
$ 67,900.00
Salaries expenses
$ 45,200.00
Rent Expenses
$ 15,650.00
Amortisation expense Office Equipment
$ 1,200.00
Supplies expenses
$ 2,650.00
Utilities expense
$ 3,200.00
(expenses accounts with debit balance closed by crediting them)
31-Mar-17
P O Neil Capital
$ 6,900.00
Income Summary
$ 6,900.00
(income summary balance closed)
31-Mar-17
P O Neil Capital
$ 15,000.00
P O Neil Withdrawals
$ 15,000.00
(withdrawals account closed)
Working
Revenue:
A
Service Revenue
$ 61,000.00
Expenses:
Salaries expenses
$ 45,200.00
Rent Expenses
$ 15,650.00
Amortisation expense Office Equipment
$ 1,200.00
Supplies expenses
$ 2,650.00
Utilities expense
$ 3,200.00
B
Total Expenses
$ 67,900.00
A - B
Net Income (Net Loss)
$ (6,900.00)
Date
Accounts Title
Debit
Credit
31-Mar-17
Service Revenue
$ 61,000.00
Income Summary
$ 61,000.00
(revenue account with credit balance closed by debiting it)
31-Mar-17
Income Summary
$ 67,900.00
Salaries expenses
$ 45,200.00
Rent Expenses
$ 15,650.00
Amortisation expense Office Equipment
$ 1,200.00
Supplies expenses
$ 2,650.00
Utilities expense
$ 3,200.00
(expenses accounts with debit balance closed by crediting them)
31-Mar-17
P O Neil Capital
$ 6,900.00
Income Summary
$ 6,900.00
(income summary balance closed)
31-Mar-17
P O Neil Capital
$ 15,000.00
P O Neil Withdrawals
$ 15,000.00
(withdrawals account closed)
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