The income statement for the year 2015 of Fugazi Co. containsthe following information:
Revenues
$70,000
Expenses:
Salaries and Wages Expense
$45,000
Rent Expense
12,000
Advertising Expense
10,000
Supplies Expense
6,000
Utilities Expense
2,500
Insurance Expense
2,000
Total expenses
77,500
Net income (loss)
$(7,500)
The entry to close the expense accounts includes a
Select one:
A. credit to Income Summary for $7,500.
B. debit to Utilities Expense for $2,500.
C. debit to Income Summary for $7,500.
D. debit to Income Summary for $77,500.
The income statement for the year 2015 of Fugazi Co. containsthe following information:
Revenues | $70,000 |
Expenses: |
Salaries and Wages Expense | $45,000 | ||
Rent Expense | 12,000 |
Advertising Expense | 10,000 |
Supplies Expense | 6,000 |
Utilities Expense | 2,500 |
Insurance Expense | 2,000 |
Total expenses | 77,500 |
Net income (loss) | $(7,500) |
The entry to close the expense accounts includes a
Select one:
A. credit to Income Summary for $7,500.
B. debit to Utilities Expense for $2,500.
C. debit to Income Summary for $7,500.
D. debit to Income Summary for $77,500.
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Related questions
Debit Credit
Cash $4,400
Accounts Receivable 4,500
Office Supplies 2,700
Prepaid Insurance 1,900
Land 13,200
Building 77,000
Accumulated DepreciationâBuilding $25,500
Accounts Payable 19,400
Interest Payable 8,000
Salaries Payable 2,200
Unearned Revenue 7,100
Notes Payable (long-term) 37,000
Estrada, Capital 40,000
Estrada, Withdrawals 27,500
Service Revenue 48,300
Insurance Expense 5,000
Salaries Expense 32,900
Supplies Expense 900
Interest Expense 8,000
Utilities Expense 1,800
Depreciation ExpenseâBuilding 7,700
Total $187,500 $187,500
QUESTION 11.). Journalize the closing entries. â(Record debitsâ first, then credits. Select the explanation on the last line of the journal entryâ table.)
Start by closing revenues.
| DATE | ACCOUNTS AND EXPLANATION | DEBIT | CREDIT |
| JUN. 30 | ? | ? | ? |
| CLOS. (1) | ? | ? | ? |
| ? | ? | ? | |
| ? | ? | ? | |
| ? |
Close expenses for the period.
| DATE | ACCOUNTS AND EXPLANATION | DEBIT | CREDIT |
| JUN. 30 | ? | ? | ? |
| CLOS. (2) | ? | ? | ? |
| ? | ? | ? | |
| ? | ? | ? | |
| ? |
Close Income Summary.
| DATE | ACCOUNTS AND EXPLANATION | DEBIT | CREDIT |
| JUN. 30 | ? | ? | ? |
| CLOS. (3) | ? | ? | ? |
| ? | ? | ? | |
| ? | ? | ? | |
| ? |
| Salaries Expense | Service Revenue | |||||||
| 6/10 | 3,200 | 6/30 | 8,800 | 6/30 | 15,100 | 6/15 | 6,700 | |
| 6/28 | 5,600 | 6/24 | 8,400 | |||||
| Retained Earnings | Supplies Expense | |||||||
| 6/30 | 2,500 | 6/1 | 12,000 | 6/12 | 600 | 6/30 | 1,300 | |
| 6/30 | 2,000 | 6/24 | 700 | |||||
| Bal. | 11,500 | |||||||
| Rent Expense | Dividends | |||||||
| 6/1 | 3,000 | 6/30 | 3,000 | 6/13 | 1,000 | 6/30 | 2,500 | |
| 6/25 | 1,500 | |||||||
Instructions
(a) Prepare the closing entries that were made. (For multiple debit/credit entries, listamounts from largest to smallest eg 10, 5, 3, 2.)
| Description/Account | Debit | Credit |
| SuppliesExpenseRent ExpenseRetained EarningsDividendsService RevenueIncomeSummarySalaries Expense | ||
| ServiceRevenueDividendsSalaries ExpenseSupplies ExpenseRentExpenseRetained EarningsIncome Summary | ||
| (To closerevenue.) | ||
| ServiceRevenueSupplies ExpenseRent ExpenseSalaries ExpenseRetainedEarningsDividendsIncome Summary | ||
| SuppliesExpenseService RevenueRent ExpenseRetained EarningsIncomeSummaryDividendsSalaries Expense | ||
| RetainedEarningsService RevenueDividendsRent ExpenseIncome SummarySalariesExpenseSupplies Expense | ||
| SuppliesExpenseDividendsService RevenueRetained EarningsIncomeSummarySalaries ExpenseRent Expense | ||
| (To closeexpenses.) | ||
| DividendsRetainedEarningsSupplies ExpenseIncome SummaryService RevenueSalariesExpenseRent Expense | ||
| RetainedEarningsRent ExpenseSalaries ExpenseService RevenueSuppliesExpenseIncome SummaryDividends | ||
| (To close netincome to retained earnings.) | ||
| ServiceRevenueDividendsRent ExpenseRetained EarningsIncome SummarySalariesExpenseSupplies Expense | ||
| RetainedEarningsIncome SummaryRent ExpenseSalaries ExpenseSuppliesExpenseDividendsService Revenue | ||
| (To closedividends to capital.) |
(b) Post the closing entries to Income Summary.
| Income Summary | |||
| June 30 | June 30 | ||
| June30 | 2,000 | ||
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