These partially completed Income Statement columns from a 10 column work sheet are for Welch’s Red Sail Rental Company.
(1) Use the information to determine the amount that should be entered on the net income line of the work sheet.
(2) Prepare the company’s closing entries. The owner, L. Welch, did not make any withdrawals this period.
|
Account Title |
Debit |
Credit |
|
Rent earned |
|
102,000 |
|
Salaries expense |
45,300 |
|
|
Insurance expense |
6,400 |
|
|
Dock rental expense |
15,000 |
|
|
Boat supplies expense |
3,200 |
|
|
Depreciation expense—Boats |
19,500 |
|
|
Totals |
||
|
Net income |
|
|
|
Totals |