Question 1:
A) Assuming the at the end of the accounting period there are credit balances of $3,400 in Patient Services Revenues and $1,800 in Laboratory Fees Revenue. Prepare the required closing entry in journal form. The accounting period ends December 31.
B) Assume that debit balances at the end of the accounting period are $1,400 in Rent expense, $1,100 in wages expense, and $500 in other expenses. Prepare the required closing entry in journal form. The accounting period ends December 31.
C) Assuming that the total revenues were $5,200 and total expenses were $3,000, prepare the entry in journal form to close Income summary account to the H Blake, Capital account. The accounting period ends December 31.
D) Assuming that withdrawals during the accounting period were $800, prepare the entry in journal form to close the H Blake, Withdrawals account to the H Blake, Capital account. The accounting period ends December 31.
Question 2: Show the effects of the transactions A, B, C, and D by entering beginning balances in appropriate T accounts and recording the transactions. Assume that the H Blake, Capital account has a beginning balance of $1,300
Question 3: Below, indicated by letters, is the adjusting entries at the end of March. Prepare the required reversing entry in journal form.
debit credit
prepaid revenue (a) 180
accumulated depreciation, office equipment (b) 1,050
salaries expense (c)360
insurance expense (a) 180
depreciation expense, office equipment (b) 1,050
salaries payable (c)360
Balances 1,590 1,590
Question 4: Assume that prior to the adjustments in above, salaries expense had a debit balance of $1,800 and Salaries payable had a zero balance. Prepare a T account for each of these accounts. Enter the beginning balance; post the adjustments for accrued salaries, the appropriate closing entry, and the reversing entry; and enter the transaction in the T accounts for a payment of $480 for salaries on April 3.
Question 5: Prepare a the required closing entries in journal form for the year ended December 31, using the following items from the Income Statement columns of a work sheet and assuming that withdrawals by the owner, M. Dye, were $6,000.
Debit Credit
repair revenue 32,860
wages expense 12,260
rent expense 1,800
supplies expense 6,390
insurance expense 1,370
depreciation expense, repair equip. 2,020
Net income 23,840 32,860
9,020
32,860 32,860