Journalize and post-adjusting entries

Post the adjusting entries to the General Journal and General Ledger.

Journalize and post-closing entries

Closes all balances of drawing, revenue, and expense accounts to zero to prepare them for the next accounting
period.

Assets, Liabilities, and Capital are real accounts; while, Drawing, Revenue, and Expenses are nominal accounts.

1. Debit all revenue accounts and credit the total to the profit or loss summary account.
2. Credit all expenses accounts and debit the total to the profit and loss summary account.
3. The net effect of the profit or loss summary account will be closed to the capital account.
4. Any balance of the drawing account will be charged against the capital account.

CLOSING ENTRIES 73 160

April 30 Local Travel Fees Earned 832 440
International Travel Fees Earned
Profit and Loss Summary 905 600
30 Profit and Loss Summary 569 500
Salaries Expense 190 000
Utilities Expense 12 000
Repairs and Maintenance Expense 7 000
Organization Expense 250 000
Gas and Oil Expense 10 000
Interest Expense 1 000
Depreciation Expense – Automobile 25 000
Depreciation Expense – Office Equipment 4 500
Depreciation Expense – Furniture and Fixtures 10 000
Office Supplies Expense 35 000
Rent Expense 25 000
30 Profit and Loss Summary 336 100
Yoon, Capital 336 100
30 Yoon, Capital 30 000
 Yoon, Drawing 30 000

T-Account for Profit and Loss Summary

LANDING ON YOU TRAVEL SERVICES COMPANY

Post-Closing Trial Balance
April 30, 2020

Assets
Cash Php 4 180 456
Accounts Receivable Php 77 776
Office Supplies Php 15 000
Prepaid Rent Php 125 000
Automobile Php 3 200 000
Acc. Dep. – Automobile Php 25 000
Office Equipment Php 300 000
Acc. Dep. – Office Equipment Php 4 500
Furniture and Fixtures Php 600 000
Acc. Dep. – Furniture and Fixtures Php 10 000
Liabilities
Accounts Payable Php 2 000 000
Notes Payable Php 100 000
Unearned Local Travel Fees Php 51 632
Unearned International Travel Fees Php 00 000
 Interest Payable Php 1 000
Capital
Yoon, Capital Php 6 306 100
Total Php 8 498 232 Php 8 498 232