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Unformatted text preview: Some, but not all of the members paid their dues in 2007. 2. P & H Company has the following account balances following adjustments, and now needs to close all of the nominal (aka temporary, or tSE) accounts at the end of the accounting fiscal year on December 31, 2006. Cash $ 15,000 Dr Accounts Receivable 220,000 Dr Inventory 150,000 Dr Land 280,000 Dr Accounts Payable 70,000 Cr Mortgage Payable 180,000 Cr Contributed Capital 427,000 Cr Retained Earnings, Jan. 1 2006 28,000 Cr Sales Revenue 360,000 Cr Cost of Goods Sold 240,000 Dr Selling Expenses 110,000 Dr General and Administrative Expenses 50,000 Dr The list of accounts above shows all nominal accounts and some others. Show the journal entry to close the nominal accounts and find the ending balance (as of Dec. 31, 2006) in Retained Earnings (don’t forget to note whether the balance is a debit or a credit). From the text: Problems 3-1, 3-2, 3-3, 3-4, Case 4-2...
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- Fall '08
- Generally Accepted Accounting Principles, Cr Cr Cr, Dr Dr Dr Dr Cr Cr