Key Accounting Principles Volume 1, 4th Edition - Textbook - page 402

Appendix I Review Exercise Solutions
402
b) Complete the closing entries using the income summary method and post them to the
general ledger.
JOURNAL Page 3
Date Account Title and Explanation PR Debit Credit
2016
Jun 30 Service Revenue 400 4,950
Income Summary 315 4,950
Close revenue to income summary
Jun 30 Income Summary 315 1,575
Advertising Expense 500 450
Depreciation Expense 510 100
Insurance Expense 515 100
Interest Expense 520 25
Rent Expense 540 900
Close expenses to income summary
Jun 30 Income Summary 315 3,375
Gordon, Capital 300 3,375
Close income summary to capital
Jun 30 Gordon, Capital 300 1,000
Gordon, Drawings 310 1,000
Close drawings to capital
GENERAL LEDGER
Account: Cash GL. No. 101
Date Description PR DR CR Balance
2016
Jun 1 Opening Balance 4,200 DR
Jun 1 J1 900 3,300 DR
Jun 3 J1 1,200 2,100 DR
Jun 6 J1 2,100 4,200 DR
Jun 13 J1 3,000 7,200 DR
Jun 16 J1 300 7,500 DR
Jun 23 J1 950 6,550 DR
Jun 30 J1 1,000 5,550 DR