Reference no: EM131771170
Problem - The following Trial balance were arranged for GPN Drug Store, Prepare the scene closing entries for the year ended Dec 31.
GPN Drug Store Trial Balance December 31, 2016
Accounts payable 12,000
Accounts Receivable 14,500
Accumulated Depreciation, Equipment 2,000
Accumulated Depreciation, Furniture 3,000
Advertising expense 300
Automobile expense 480
Bank service charge expense 25
Cash 22,888
Depreciation expense, Equipment 750
Depreciation expense, Furniture 600
Entertainment 10.000
Furniture & Fixture 9,000
Insurance expense 575
Interest expense 290
Interest income 175
Inventory 35,000
Legal expense 2,500
Maintenance expense 600
Medical Supplies 2,100
Medical supplies expense 290
Notes payable 18,000
Office supplies 850
Office supplies expense 1,575
Petty cash 500
Postage Expense 420
Professional fees income 3,000
Rent Expense 2,500
Repairs expense 120
Sales Discount 2,000
Sales returned & Allowance 1,000
Sales revenue 40,000
Travel expense 875
Unearned revenue 5,000
Utilities expense 782
Owner capital 28,545
Owner Draw 1,000
Requirement:
1) Complete Problem, the "Behind the Scene" closing entry to close all the Revenue accounts is a credit to Retained Earnings for the amount of ______________?
2) Complete Problem, the "Behind the Scene" closing entry to close all the Expense accounts is a debit to Retained Earnings for the amount of _____.?( amount)
3) Complete Problem, To close the Owner's Drawing account, the entry is one of the following:
Debit to the Owner's Drawing account
Credit to the Owner's Capital Account
Debit to the Miscellaneous Expense Account
Credit to the Owner's Drawing Account
Debit to the Cash Account
4) Complete Problem, In manual accounting, the Income Summary Account is closed to:
Cash
Owner's Capital
Owner's Draw
Revenue
Expenses