Chapter 6
The Accounting Cycle: Statements and Closing Entries
160
Account Description
Account #
ASSETS
Cash
101
Accounts Receivable
105
Prepaid Insurance
110
Equipment
120
Accumulated Depreciation
125
LIABILITIES
Accounts Payable
200
Interest Payable
205
Unearned Revenue
210
Bank Loan
215
OWNER’S EQUITY
Gordon, Capital
300
Gordon, Drawings
310
Income Summary
315
Account Description
Account #
REVENUE
Service Revenue
400
EXPENSES
Advertising Expense
500
Bad Debt Expense
505
Depreciation Expense
510
Insurance Expense
515
Interest Expense
520
Maintenance Expense
525
Office Supplies Expense
530
Professional Fees Expense
535
Rent Expense
540
Salaries Expense
545
Telephone Expense
550
Travel Expense
555
Required
a) Prepare the income statement, statement of owner’s equity and the classified balance sheet.
b) Complete the closing entries using the income summary account and post them to the general
ledger.
c) Prepare the post-closing trial balance.
See Appendix I for solutions.
a) Prepare the income statement, statement of owner’s equity and the classified balance sheet.
