Preparation of Closing Entries from Worksheet.
The profit and Loss Account and the Balance Sheet columns of the worksheet of Manoj Company Limited are as follows:
Manoj Company Limited
Worksheet, March 31, 20XX
|
Profit & Loss A/c |
Balance Sheet |
|||
|
Account |
Debit |
Credit |
Debit |
Credit |
|
Office Equipment |
20,000 |
|||
|
Accumulated Depreciation, Office Equipment |
8,000 |
|||
|
Office Supplies |
1,860 |
|||
|
Debtors |
4,100 |
|||
|
Cash |
2,900 |
|||
|
Prepaid Rent |
6,000 |
|||
|
Creditors |
3,700 |
|||
|
Unearned Revenue |
1,300 |
|||
|
Telephone expense payable |
870 |
|||
|
Income Tax payable |
800 |
|||
|
Share Capital |
20,000 |
|||
|
Retained Earnings |
790 |
|||
|
Dividends |
1,400 |
|||
|
Revenue from Services |
23,720 |
|||
|
Interest income |
200 |
|||
|
Salaries Expense |
7,800 |
|||
|
Office Supplies Expense |
2,470 |
|||
|
Electricity Expense |
1,210 |
|||
|
Telephone expense |
1,640 |
|||
|
Rent Expense |
6,000 |
|||
|
Insurance Expense |
1,200 |
|||
|
Depreciation Expense |
2,000 |
|||
|
Income Tax Expense |
800 |
|||
|
Total |
23,120 |
23,920 |
36,260 |
35,460 |
|
Net Profit |
800 |
800 |
||
|
Total |
23,920 |
23,920 |
36,260 |
35,460 |
Required
Prepare closing entries on December 31, 20XX.