Identifying and journalizing closing entries Gunther recorded the following transactions and year end adjustments during 2012:
|
Journal Entry |
||
|
Accounts and Explanations |
Debit |
Credit |
|
Prepaid rent |
8,000 |
|
|
Cash |
|
8,000 |
|
Prepaid the annual rent. |
|
|
|
Rent expense |
5,100 |
|
|
Prepaid rent |
|
5,100 |
|
Adjustment to record rent expense for the year. |
|
|
|
Cash |
4,200 |
|
|
Unearned service revenue |
|
4,200 |
|
Collected cash in advance of service revenue to be earned. |
|
|
|
Unearned service revenue |
4,700 |
|
|
Service revenue |
|
4,700 |
|
Adjustment to record revenue earned. |
|
|
Requirements
1. Assuming that there were no other service revenue and rent expense transactions during 2012, journalize Gunther’s closing entries at the end of 2012.
2. Open T accounts for Service revenue and Rent expense. Post the closing entries to these accounts. What are their balances after closing?