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.