Question

The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Retained earnings, $59,000; Dividends, $2,000; Fees Earned, $56,000; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances.
Required:

Prepare the second closing entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.

Answer 1

Explanation:

The second closing entry is as follows

Income summary Dr $48,000

          To Depreciation Expense $25,000

           To Salaries expense $23,000

(Being the expenses account are closed)

While closing the expenses account we debited the income summary account with a total amount of expenses account and credited the expenses account individually with their amount