QuestionQuestion

(1) What accounts are debited and credited when making closing entries? Use general categories like, Income, Expense, etc. Be sure to statement them in proper order.

(2) The ledger of the Get Rich Legally Company contains these balances: Capital $20,000; Dividends $2,000, Retained Earnings $10,000, Income From Sales $50,000, Salaries and Commissions Expense $27,000, Insurance Expense $7,000. Prepare the closing entries for December 31, 2014. All balances are normal balances.
Date               Account            Debit            Credit

(3) The Wee Messed Up Company made the following errors when journalizing and posting the following entries:
1. Collection on account from a customer was from Mr. Smith was recorded as a $870 Debit to Cash and Credit to Service Revenue.
2. The purchase of Office Supplies on account $1,470 was recorded as a Debit to Supplies for $1,740 and Credit to Accounts Payable for $1,740.
Prepare the correcting entries.
Number          Account             Debit            Credit

(4) The worksheet for the Upsey Daisy Company shows Dividends $22,000, Capital Stock $70,000 and, Net Income of $41,000. Prepare the closing entries for the year.

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