Acc213 CH1 Closing Entries

The closing entry for revenues is:

• Dr. Service revenue for BD 29,450

  Cr. Income Summary for BD 29,450

• Dr. Account receivable for BD 45,400

  Cr. Income Summary for BD 45,400

• Dr. Income summary for BD 29,450

  Cr. Service revenue for BD 29,450

The Entry to close Expenses is:

• Dr. Income summary for BD 11,950

  Cr. wages Expense for BD 9,350

  Cr. Advertising Expense for BD 2,600

• Dr. wages Expense for BD 9,350

  Dr. Advertising Expense for BD 2,600

  Cr. Capital for BD 11,950

• Dr. wages Expense for BD 9,350

  Dr. Advertising Expense for BD 2,600

  Cr. Income summary for BD 11,950

The value of income summary after closing revenues and expenses is:

• 17,500

• -17,500

The entry to close income summary is:

• Dr. Capital for BD 17,500

  Cr. Income summary for BD 17,500

• Dr. Income summary for BD 17,500

  Cr. Capital for BD 17,500

The Entry to close drawings is:

• Dr. Capital for BD 103,000

  Cr. Drawing for BD 103,000

• Dr. Capital for BD 650

  Cr. Drawing for BD 650

• Dr. Drawing for BD 650

  Cr. Capital for BD 650