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  • Michael's Fishing Supplies: 30/6/2020 Closing Entries

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    Ha Tran
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    Michael's Fishing Supplies prepared closing entries on June 30, 2020 to transfer revenue and expenses from temporary accounts to income summary and capital accounts. The entries closed revenue of $62,080 to income summary and expenses totaling $26,760 from income summary to the respective expense accounts. The final entry closed the net income of $35,320 to the capital account of the owner, Michael Rau.

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    Exercise 5.5

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    Michael's Fishing Supplies prepared closing entries on June 30, 2020 to transfer revenue and expenses from temporary accounts to income summary and capital accounts. The entries closed revenue of $62,080 to income summary and expenses totaling $26,760 from income summary to the respective expense accounts. The final entry closed the net income of $35,320 to the capital account of the owner, Michael Rau.

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    15 views2 pages

    Michael's Fishing Supplies: 30/6/2020 Closing Entries

    Uploaded by

    Ha Tran
    Michael's Fishing Supplies prepared closing entries on June 30, 2020 to transfer revenue and expenses from temporary accounts to income summary and capital accounts. The entries closed revenue of $62,080 to income summary and expenses totaling $26,760 from income summary to the respective expense accounts. The final entry closed the net income of $35,320 to the capital account of the owner, Michael Rau.

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    © All Rights Reserved
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    Michael's Fishing Supplies

    30/6/2020
    Closing Entries
    Account Debit Credit
    Sales 62,080
    Income Summary 62,080

    Income Summary 26,760


    Salaries Expense 14,040
    Insurance Expenses 1,080
    Interest Expense 600
    Depreciation Expense 4,200
    Fishing Supplies Expense 2,040
    Rent Expense 4,800

    Income Summary 35,320


    Michael Rau, Capital 35,320

    Michael Rau, Capital 14,400


    Michael Rau, Drawings 14,400
    Michael's Fishing Supplies
    Post-closing Trial Balance
    as at 30 June 2020
    Accounts Debit Credit
    Cash 12,400
    Accounts receivable 25,200
    Fishing supplies 6,000
    Prepaid insurance 3,000
    Boat 36,000
    Accumulated depreciation - boat 18,000
    Accounts payable 6,000
    Salaries payable 2,040
    Interest payable 3,120
    Mortgage payable 7,800
    Unearned revenue 6,720
    Michael Rau, Capital (35,320 - 14400 + 18000) 38,920

    Total 82,600 82,600

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