2. Sample Problem Chapter 6

3.  Journalize closing entries. On December 31 the ledger of Henderson Company contained the following account balances: All the accounts have normal balances. Journalize the closing entries. Use 4 as the general journal page number.

4. On December 31 the ledger of Henderson Company contained the following account balances. All accounts have normal balances. Journalize the closing entries. Cash $36,000Eugene Henderson$24,000 Accounts Receivable 2,400Fees Income 85,000 Supplies 1,600Depreciation expense 3,000 Equipment 30,000Salaries expense 28,000 Accumulated Depr. 3,000Supplies expense 4,000 Accounts Payable 4,000Telephone expense 3,600 E. Henderson, capital 46,200Utilities expense 7,200

5. Step 1: Transfer Revenue Account Balances General JournalPage 4 DateDescriptionDebitCredit 2007Closing Entries Dec. 31Fees Income85,000 Income Summary85,000

6. Step 2: Transfer Expense Account Balances General JournalPage 4 DateDescriptionDebitCredit 2007Closing Entries Dec. 31Income Summary45,800 Depreciation expense3,000 Salaries expense 28,000 Supplies expense4,000 Telephone expense3,600 Utilities expense7,200

7. Step 3: Transfer Net Income or Net Loss to Owner’s Equity Income Summary 45,800 85,000 Bal. 39,200 Journal Entry: DateDescriptionDebit Credit 2007Closing Entries Dec. 31Income Summary39,200 E. Henderson, capital39,200

8. Step 4: Transfer the Drawing Account balance to Capital General JournalPage 4 DateDescriptionDebitCredit 2007Closing Entries Dec. 31E. Henderson, capital24,000 E. Henderson, drawing24,000