Lesson 5
Completing the Accounting Cycle
Exercise
Closing entries
An adjusted trial balance for Mariposo,Inc.,at December 31 appears below.
MARIPOSO,INC.
Adjusted Trial Balance
December 31,2004
Debit Credit
Cash $ 78,000
Accounts receivable 126,000
Office equipment 250,000
Accumulated depreciation,office equipment $ 50,000
Accounts payable 76,000
Income taxes payable 74,000
Capital stock 125,000
Retained earnings 90,000
Dividends 72,000
Sales commissions earned 622,000
Advertising expense 83,000
Rent expense 90,000
Salaries expense 163,000
Utilities expense 76,000
Depreciation expense,office equipment 25,000
Income taxes expense 74,000
$1,037,000 $1,037,000
Required:
Prepare journal entries to close the accounts,Use four entries to,(1) close the revenue account,(2) close the expense accounts,(3) close the Income Summary account,and (4) close the Dividends account.
Completing the Accounting Cycle
Exercise
Closing entries
An adjusted trial balance for Mariposo,Inc.,at December 31 appears below.
MARIPOSO,INC.
Adjusted Trial Balance
December 31,2004
Debit Credit
Cash $ 78,000
Accounts receivable 126,000
Office equipment 250,000
Accumulated depreciation,office equipment $ 50,000
Accounts payable 76,000
Income taxes payable 74,000
Capital stock 125,000
Retained earnings 90,000
Dividends 72,000
Sales commissions earned 622,000
Advertising expense 83,000
Rent expense 90,000
Salaries expense 163,000
Utilities expense 76,000
Depreciation expense,office equipment 25,000
Income taxes expense 74,000
$1,037,000 $1,037,000
Required:
Prepare journal entries to close the accounts,Use four entries to,(1) close the revenue account,(2) close the expense accounts,(3) close the Income Summary account,and (4) close the Dividends account.
