An accountant for Jolley, Inc., a merchandising enterprise, has just finished posting all year-end...

Question

An accountant for Jolley, Inc., a merchandising enterprise, has just finished posting all year-end adjusting entries to the ledger accounts and now wishes to close the appropriate account balances in preparation for the new period.1. For each of the accounts listed, indicate whether the year-end balance should be (a) carried forward to the new period, (b) closed by debiting the account, or (c) closed by crediting the account.(a) Cash $ 25,000(b) Sales 75,000(c) Dividends 3,500(d) Inventory 7,500(e) Selling Expenses 7,900(f) Capital Stock 100,000(g) Wages Expense 14,400(h) Dividends Payable $ 4,000(i) Cost of Goods Sold 26,500(j) Accounts Payable 12,000(k) Accounts Receivable 140,000(l) Prepaid Insurance 16,000(m) Interest Receivable 1,500(n) Sales Discounts 4,200(o) Interest Revenue 6,500(p) Supplies 8,000(q) Retained Earnings 6,500(r) Accumulated Depreciation 2,000(s) Depreciation Expense 1,8002. Give the necessary closing entries.3. What was Jolley’s net income (loss) for the period?

Robert · Accepted Answer

Answer
1. For each of the accounts listed, indicate whether the year-end balance should 
be (a) carried forward to the new period, (b) closed by debiting the account, or (c) 
closed by crediting the account. 
Particulars Answer 
a) Cash (a) carried forward to the new period 
b) Sales (b) closed by debiting the account 
c) Dividends (c) Closed by crediting the account. 
 
d)Inventory (a) carried forward to the new period 
e) Selling Expenses (c) Closed by crediting the account. 
 
f) Capital Stock (a) carried forward to the new period 
g) Wages expense (c) Closed by crediting the account. 
 
h) Dividend Payable (a) carried forward to the new period 
I) Cost of Goods sold (c) Closed by crediting the account.

An accountant for Jolley, Inc., a merchandising enterprise, has just finished posting all year-end adjusting entries to the ledger accounts and now wishes to close the appropriate account balances in...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment