Required: Prepare the closing entries for China Tea Company for the year ended December 31, 2018. Accounting Financial & Managerial Accounting Financial statements and closing entries Lamp Light Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Purpose of closing entries: Closing entries are necessary because they help a company review income accumulation during a period, and verify data figures found on the adjusted trial balance. Prepare the necessary adjusting journal entries at December 31, 2016. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 20Y5. On July 1, 2016, purchased $12,500 of IBM Corporation bonds at face value. 1. 1. Prepare the necessary closing entries at December 31, 2018. rev: 06_20_2018_QC_CS-129709 Hint #1 References Financial Statements Learning Objective: 02-06 Describe the four basic financial statements. The closing entries are the journal entry form of the Statement of Retained Earnings. Solution * 82,500 – 64,500: In our example, income summary account has a credit balance because the balance of service revenue earned account ($82,500) is greater than the total of the balances of eight expense accounts ($64,500). 1. Prepare Journal Entries: 6. Question: 1. Solution for Prepare the necessary adjusting entries at December 31, 2018, for the Falwell Company for each of the followingsituations. Prepare the necessary closing entries at December 31, 2018. 1 On December 1, 2017, the company paid its annual fire insurance premium of $6,000 for the year beginning December 1 and debited prepaid insurance. May 31 G2 22,000 Prepare closing journal entries from the above ledger accounts. On November 1, 2013, the company borrowed $200,000 from a bank. Prepare the closing entries. Prepare an income statement for the year ended December 31. Accountants may perform the closing process monthly or annually. Insurance expense, prepaid insurance 1750; 4200/12 = $500 per month x 5 months = 1750 On September 1, 2015, Gold Magazine sold 400 one-year subscriptions for $90 each. 2. Vito's fiscal year-end is December 31. The closing process reduces revenue, expense, and dividends account balances (temporary accounts) to zero so they are ready to receive data for the next accounting period. A note is signed with principal and 6% interest to be paid on August 31, 2019 Record the necessary adjusting entries for Shocker at December 31, 2018. 2. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. Subscribe now!arrow_forward Question The The inventory as of December 31, 20Y5, was $305,000. Prepare a post closing trial balance. Prepare the closing entries for China Tea Company for the year ended December 31, 2018. Prepare the necessary closing entries at December 31, 2017. 3. 1 Answer to On December 31, 2018, Ditka Inc. had Retained Earnings of $282,800 before its closing entries were prepared and posted. Required 1. Prepare the necessary closing entries at December 31, 2018. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in Prepare Closing Entries: 2. Assume that no financial… 1 3 Record the entry to close the expense accounts using the income summary. ... To record December accrued revenue. Posted by Unknown at 4:31 AM. The information necessary for preparing the 2016 year-end adjusting entries for Vito's Pizza Parlor appears below. Solution for Prepare the necessary adjusting entries at December 31, 2018, for the Microchip Company for each of the followingsituations. The estimated cost of customer returns inventory for December 31, 20Y5, is estimated to increase to $40,000. Dr Office salaries expense-24325. Record the entry to close the revenue accounts using the income summary. At its December 31 year-end, Yummy Foods would record which of the following adjusting entries? Prepare the post-closing trial balance. Assume the account number for Income Summary is 901. Prepare the necessary adjusting entries at December 31, 2018, for the Falwell Company for each of the following situations. Prepare the necessary closing entries from the available information at December 31. Prepare a worksheet for Farish Investment Advisers at December 31, 2018. No adjusting entries were made during the year. On October 1, 2016, Microchip lent $90,000 to another company. The note requires principal and interest at 12% to be paid on April 30, 2014. 2. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. On October 1, 2018… 3. Prepare the necessary closing entries at December 31, 2013. EXAM 1 Q6,7,8 1. 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