Paloma Company shows the following balances in selected accounts of its adjusted trial balance. Supplies $32,000 Supplies Expense 6,000 Accounts Receivable 12,000 Dividends 22,000 Retained Earnings 70,000 Service Revenue 108,000 Salaries and Wages Expense 40,000 Utilities Expense 8,000 Rent Expense 18,000 Prepare the remaining closing entries at December 31

Question

Business

Raegan Fritz

22 September, 13:37

Paloma Company shows the following balances in selected accounts of its adjusted trial balance. Supplies $32,000 Supplies Expense 6,000 Accounts Receivable 12,000 Dividends 22,000 Retained Earnings 70,000 Service Revenue 108,000 Salaries and Wages Expense 40,000 Utilities Expense 8,000 Rent Expense 18,000 Prepare the remaining closing entries at December 31

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Brooklyn Case · Answer 1

Closing entries

Date account and explanation Debit Credit

Dec 31 Service revenue 108000

Income summary 1080000

(To close revenue)

Dec 31 Income summary 72000

Supplies expense 6000

Salaries and wages expense 40000

Utilities expense 8000

rent expense 18000

(To close expense)

Dec 31 Income summary 36000

Owner's capital 36000

(To close income summary)

Dec 31 Owner's capital 22000

Owner's Drawing 22000

(To close withdrawal)