Chapter 3 + 4:

Ex 6: Closing entries for Beauty Salon:

Date Account name Dr Cr
31/12 Rent earned 3400
Closing revenues Fees earned 24400
Income summary 27800
(3400 = 3200+200(e) + 800(f); 24400 =
23400+1000 (j) )
31/12 Income Summary 14680
Closing expenses Insurance expense 1240
Supplies expense 780
Depreciation expense (c+d) 2570
Wages expense (3200+ 200 (g)) 3400
Utility expense 690
Property taxes expense (600+450 (h)) 1050
Interest expense (4350 + 600 (i)) 4950
31/12 Income Summary 13120
Closing Income Retained earnings 13120
summary

Ex9:
Date Account name Dr Cr
31/12 Depreciation expense 200
a Accumulated depreciation 200
31/12 Unearned rent 700
b Rent earned 700
31/12 Insurance expense 200
c Prepaid insurance 200
31/12 d Salary expense 1000
Salary payable 1000
31/12 Supplies expense 500
Supplies 500
31/12 Rent earned 700
Closing revenues Consulting revenue 4000
Income summary 4700

31/12 Income Summary 3900

Closing expenses Insurance expense 200
Supplies expense 500
Depreciation expense 200
Salary expense 2000
Advertising expense 1000
31/12 Income Summary 800
Closing Income Retained earnings 800
summary