Expenses Revenue

Income summary Revenue 1 Revenue

50 750 750 750 Income summary
50
250 Bal.0 2 Income summary
400 Gasoline expense
750 Depreciation truck
Gasoline expense Depreciation exp. tools Depreciation ex. Tools
50 50 50 50
Bal.0 Bal.0 3 Income summary
Retained earnings

Depreciation expense truck Retained earnings 4 Retained earnings

250 250 200 400 Dividends
Bal. 0

Dividends
200 200
 750
Income summary 750

350
Gasoline expense 50
Depreciation truck 250
Depreciation ex. Tools 50

400
Retained earnings 400

200
200
 Exp. Rev.
Income summary Lawn care Revenue Closing entries:
158640 230400 230400 230400 1 Lawn care renue
71760 Bal. 0 Income summary
230400
2 Income summary
Salary expense
Salary expense Supply expense Supply expense
124800 124800 2880 Advertising expense
Depreciation expense
Income tax expense
Advertising expense Deprec. Expense
720 720 2400 2400 3 Income summary
Retained earnings

4 Retained earnings
Income tax expense Retained earnings Dividends
27840 4800 108000
71760
Green Lawns
Dividends Income Statement
4800 4800 For the year ended 31/12

Lawn care revenue

Closing procedure: Less Expenses
1 Close revenue to Income Summary Net income
2 Close Expense to Income summary
3 Close Income summary and take the profit to Retained earnings
4 Close the dividends to Income summary Green Lawns
Statement of RE
For the year ended 31/12

Retained earnings Jan. 1

Add net income
Subtotal
Less Dividends
Retained earnings Derc.31

Green Lawns
Balance Sheet
Dec. 31, 2021

ASSETS LIABILITIES
Current: Short-term:
Cash 218640 A/P 3600
A/R 10800 Income tax payable 8400
Supplies 720
Fixed: SE
Equipment 28800 Capital stock 60000
Less accum. Dep. -12000 Retained earnings 174960
246960 246960
 230400
230400

158640
124800
2880
720
2400
27840

71760
71760

4800
4800

r ended 31/12

230400
-158640
71760

r ended 31/12

108000
71760
179760
-4800
174960
 Prob. 2

Closing procedure:
1 Close revenue to Income Summary
2 Close Expense to Income summary
3 Close Income summary and take the profit to Retained earnings
4 Close the dividends to Income summary

Closing entries:

31/12 Guide revenue earned 102000 Guide revenue earned

Income summary 102000 102000 102000

31/12 Income summary 105000

Salary expense 87500
Camping supply expense 1200
Insurance expense 9600 EXP REV
Depreciation exp 5000 Income summary
Interest expense 1700 105000 102000
3000
31/12 Retained earnings 3000
Income summary 3000

31/12 Retained earnings 1000

Dividends 1000 Insurance expense
9600 9600

Wilderness Guide Serv

Income Statement
For the year ended 31/12

Guide revenue earned 102000 Interest expense

Less Expenses 105000 1700 1700
Net income -3000

Wilderness Guide Serv

Income Statement
For the year ended 31/12

Retained earnings Jan. 1 15000 Dividends

Subtract loss -3000 1000 1000
Subtotal 12000
Less Dividends -1000
RE Dec. 31 11000
 Wilderness Guide Serv
Balance Sheet
Dec. 31, 2021
ASSETS LIABILITIES
Current Short-term
Cash 12200 N/P 18000
A/R 31000 A/P 9500
Camping supplies 7900
Unexpired insurance 2400
Fixed: SE
Equipment 70000 Capital stock 25000
Less Accum. Deprec. -60000 RE 11000
63500 63500
 Salary expense
87500 87500

Camping supply exp

1200 1200

Depreciation expense
5000 5000

Retained earnings
3000 15000
1000