Bookkeeping 28. Closing the books

Question 1

1. What is the GENERAL JOURNAL entry made for the REVENUE ACCOUNTS after closing?

Answer 1

Sales Rev………100k

Inc Summ……….100k

Question 2

2. What is the GENERAL JOURNAL entry made for the EXPENSE ACCOUNTS after closing?

Answer 2

Inc Summ………80k
Rent Exp………30k
Wage Exp…….40k
Dep Exp………10k

Question 3

3. What is the GENERAL JOURNAL entry for adjusting the CAPITAL ACCOUNT after CLOSING?

Answer 3

Inc Summ……10k

JRA Cap……..10k

Question 4

4. What is the GENERAL JOURNAL entry for adjusting the OWNER´S DRAWING ACCOUNT after closing?

Answer 4

JRA Cap…..2100

JRA Draw’g Acc…2100

Question 5

5. What is the step after the final entries have been made to the GENERAL JOURNAL?

Answer 5

It is customary to take a POST CLOSING TRIAL BALANCE.

Question 6

6. How do you do a POST CLOSING TRIAL BALANCE?

Answer 6

After completing all the steps of closing, you list the balances in each LEDGER ACCOUNT (before they were brought to zero) in TWO COLUMNS, Dr and Cr.
THEIR SUM SHOULD EQUAL.