Brief Exercise 4 5
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The ledger of Rios Company contains the following balances: Owner’s Capital $30,000; Owner’s Drawings $2,000; Service Revenue $50,000; Salaries and Wages Expense $27,000; and Supplies Expense $7,000.
The closing entries are as follows:

(1) Close revenue accounts.
(2) Close expense accounts.
(3) Close net income/(loss).
(4) Close drawings.

Post the closing entries in the order presented in the problem and use the numbers as a reference.

Salaries and Wages Expense
(3)(4)(2)TotalBal.(1)EAT_1356601583214_0_33946389784456676 27,000 (3)(4)Total(1)Bal.(2)EAT_1356601596881_0_8340212147535379 27000
Supplies Expense
Total(1)(2)(3)Bal.(4)EAT_1356601613380_0_19553797936854955 7000 (4)Total(2)Bal.(1)(3)EAT_1356601626983_0_49683990790738863 7000
Service Revenue
(1)(4)(3)TotalBal.(2)EAT_1356601644002_0_2694707485500105 50,000 Bal.(4)(2)Total(1)(3)EAT_1356601655670_0_17655500583722838 50,000
Owner’s Drawings
(4)Total(2)Bal.(3)(1)EAT_1356601670673_0_07842721362347826 2000 (2)(3)(4)TotalBal.(1)EAT_1356601682606_0_8504047185242275 2000
Income Summary
(2)(4)TotalBal.(1)(3)EAT_1356601699792_0_12634744932973685 (2)(3)TotalBal.(4)(1)EAT_1356601722504_0_7147600104859219
(2)(3)(4)Bal.Total(1) (2)Total(4)(3)Bal.(1)
Total(1)(3)Bal.(4)(2) (2)(4)Bal.Total(1)(3)
Owner’s Capital
(4)(1)(2)(3)TotalBal.EAT_1356601784060_0_7557054980497615 30000 (2)(3)Bal.(1)(4)TotalEAT_1356601816305_0_247268682684193 30000
Bal.Total(3)(1)(2)(4) (4)(3)TotalBal.(1)(2)
(1)TotalBal.(2)(3)(4) Total(3)Bal.(2)(1)(4)

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