Journalizing closing entries
The trial balance and adjustments columns of the worksheet of Budget Business Systems at March 31, 2012, follow:
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BUDGET BUSINESS SYSTEMS Worksheet Year Ended March 31,2012 |
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Trial Balance |
Adjustments |
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|
Account |
Debit |
Credit |
Debit |
Credit |
|
Cash |
$2,400 |
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|
Accounts receivable |
8,900 |
(a)$2,500 |
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|
Inventory |
36,500 |
(b)$4,800 |
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|
Supplies |
13,700 |
(c) 7,300 |
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|
Equipment |
42,500 |
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|
Accumulated depreciation |
$11,600 |
(d)2,300 |
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|
Accounts payable |
9,200 |
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|
Salary payable |
(e)1,000 |
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|
Note payable, long term |
7,900 |
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|
Bitzes, capital |
34,000 |
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|
Bitzes, drawing |
43,000 |
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|
Sales revenue |
232,000 |
(a)2,500 |
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|
Sales discounts |
2,500 |
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|
Cost of goods sold |
111,500 |
(b) 4,800 |
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|
Selling expense |
21,100 |
(c) 5,100 |
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|
(e) 1,000 |
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General expense |
10,300 |
(c) 2,200 |
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|
(d) 2,300 |
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|
Interest expense |
2,300 |
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|
Total |
$294,700 |
$294,700 |
$ 17,900 |
$ 17,900 |
Requirements
1. Compute the adjusted balance for each account that must be closed.
2. Journalize the required closing entries at March 31, 2012.
3. How much was Budget’s net income or net loss?