Chapter 4 Closing Rev & Exp Accounts

Chapter 4 Closing Rev & Exp Accounts - 5,200 Bal...

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Chapter 4 Closing Entries Page 184-185 Closing Entries Sierra Corporation Income and Expense Accounts For the 12 Months Ended October 31, 2004 Service Revenue Dividends 10,600 500 Salaries Expense Supplies Expense Rent Expense 5,200 1,500 900 Insurance Expense Interest Expense Depreciation Exp 50 50 40 Page 183 Sierra Corporation Equity Section of Balance Sheet As of October 31, 2004 Common Stock $10,000 Add: Net Income – Current Year 2,860 Less: Dividends (500) Total Stockholder’s Equity $12,360 1
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It’s now the end of the fiscal year. Let’s close the temporary accounts Service Revenue Dividends 10,600 10,600 Bal -0- 500 Bal –0- 500 Salaries Expense Supplies Expense Rent Expense
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Unformatted text preview: 5,200 Bal -0-5,200 1,500 Bal -0-1,500 900 Bal 0-900 Insurance Expense Interest Expense Depreciation Exp 50 Bal 0-50 50 Bal 0-50 40 Bal 0-40 Starting the first day of the next fiscal year , the Equity section of the Balance Sheet would now look like Sierra Corporation Equity Section of Balance Sheet As of November 1, 2004 Common Stock $10,000 Retained Earnings from Prior Year 2,360 Plus: Net Income Current Year-0-Less: Dividends Current Year -0-Total Stockholders Equity $12,360 All temporary accounts would start over with zero balances, awaiting the activity of the transactions of the new fiscal year. 2...
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Chapter 4 Closing Rev & Exp Accounts - 5,200 Bal...

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