Bookkeeping 28. Closing the books Flashcards
1
Q
- What is the GENERAL JOURNAL entry made for the REVENUE ACCOUNTS after closing?
A
Sales Rev………100k
Inc Summ……….100k
2
Q
- What is the GENERAL JOURNAL entry made for the EXPENSE ACCOUNTS after closing?
A
Inc Summ………80k
Rent Exp………30k
Wage Exp…….40k
Dep Exp………10k
3
Q
- What is the GENERAL JOURNAL entry for adjusting the CAPITAL ACCOUNT after CLOSING?
A
Inc Summ……10k
JRA Cap……..10k
4
Q
- What is the GENERAL JOURNAL entry for adjusting the OWNER´S DRAWING ACCOUNT after closing?
A
JRA Cap…..2100
JRA Draw’g Acc…2100
5
Q
- What is the step after the final entries have been made to the GENERAL JOURNAL?
A
It is customary to take a POST CLOSING TRIAL BALANCE.
6
Q
- How do you do a POST CLOSING TRIAL BALANCE?
A
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.