Activity 3.c- Post to the ledger. T-accounts have been opened using the balances

Question

Activity 3.c- Post to the ledger. T-accounts have been opened using the balances from the adjusted trial balance. Post the closing entries to the t-accounts and calculate ending balances for each account. For accounts that have a zero balance, enter the zero on the normal balance side. Use the acronym for closing entries as post references and include Bal. references where appropriate. For the Income Summary account, calculate and enter the Balance (Bal.) before posting the entry to close out the account. Date Accounts and Explanation Debit Credit Date Accounts and Explanation Debit Credit Dec. 31 Service Revenue 100,000 Dec. 31 Income Summary 46,000 Income Summary 100,000 Bright, Capital 46,000 To close Revenue To close Income Summary Date Accounts and Explanation Debit Credit Date Accounts and Explanation Debit Credit Dec. 31 Bright, Capital 24,000 Dec. 31 Income Summary 54,000 Bright, Withdrawals 24,000 Depreciation Expense--Furniture Interest Expense Rent Expense Salaries Expense Supplies Expense 9,000 To close Withdrawals 12,000 5,000 10,000 18,000 To close Expenses

Explanation / Answer

Bright, Capital and Income Sumary accounts will be prepared as follows:

Depreciation Expense - Furniture Adj. Bal 9000 9000 Income summary Bal. 0 Rent Expense Adj. Bal 5000 5000 Income summary Bal. 0 Bright, Withdrawals Adj. Bal 24000 24000 Income summary Bal. 0 Service Revenue Income summary 100000 100000 Adj. Bal 0 Bal. Interest Expense Adj. Bal 12000 12000 Income summary Bal. 0 Salaries Expense Adj. Bal 10000 10000 Income summary Bal. 0 Bright, Capital Bright, Withdrawals 24000 33000 Adj. Bal 46000 Income summary 55000 Bal. Income Summary Expenses 54000 100000 Revenue 46000 Bal. Bright, Capital 46000 0 Bal. Supplies Expense Adj. Bal 18000 18000 Income summary Bal. 0

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