At the end of its fiscal year, the adjusted trial balance of Crane Company is as...
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At the end of its fiscal year, the adjusted trial balance ofCrane Company is as follows:
CRANE COMPANY Adjusted Trial Balance July 31, 2017
Debit Credit Cash $2,850 Accounts receivable 11,420 Prepaid rent500 Supplies 750 Debt investments 8,000 Equipment 19,950Accumulated depreciation—equipment $5,700 Patents 18,300 Accountspayable 4,265 Interest payable 750 Unearned revenue 2,050 Notespayable (due on July 1, 2019) 45,300 B. Crane, capital 28,285 B.Crane drawings 16,900 Service revenue 74,100 Interest revenue 320Depreciation expense 2,850 Interest expense 3,000 Rent expense18,550 Salaries expense 36,850 Supplies expense 20,850 $160,770$160,770 Prepare the closing entries. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for theaccount titles and enter 0 for the amounts.) Date Account Titlesand Explanation Debit Credit July 31 (To close revenue accounts)July 31 (To close expense accounts) July 31 (To close profit tocapital) July 31 (To close drawings account)
At the end of its fiscal year, the adjusted trial balance ofCrane Company is as follows:
CRANE COMPANY Adjusted Trial Balance July 31, 2017
Debit Credit Cash $2,850 Accounts receivable 11,420 Prepaid rent500 Supplies 750 Debt investments 8,000 Equipment 19,950Accumulated depreciation—equipment $5,700 Patents 18,300 Accountspayable 4,265 Interest payable 750 Unearned revenue 2,050 Notespayable (due on July 1, 2019) 45,300 B. Crane, capital 28,285 B.Crane drawings 16,900 Service revenue 74,100 Interest revenue 320Depreciation expense 2,850 Interest expense 3,000 Rent expense18,550 Salaries expense 36,850 Supplies expense 20,850 $160,770$160,770 Prepare the closing entries. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for theaccount titles and enter 0 for the amounts.) Date Account Titlesand Explanation Debit Credit July 31 (To close revenue accounts)July 31 (To close expense accounts) July 31 (To close profit tocapital) July 31 (To close drawings account)
Answer & Explanation Solved by verified expert
| Date | Account Titles and Explanation | Debit | Credit | |
| July 31 | Service revenue | 74100 | ||
| Interest revenue | 320 | |||
| Income Summary | 74420 | |||
| (To close revenue accounts) | ||||
| July 31 | Income Summary | 82100 | ||
| Depreciation expense | 2850 | |||
| Interest expense | 3000 | |||
| Rent expense | 18550 | |||
| Salaries expense | 36850 | |||
| Supplies expense | 20850 | |||
| (To close expense accounts) | ||||
| July 31 | B. Crane, capital | 7680 | =82100-74420 | |
| Income Summary | 7680 | |||
| (To close profit to capital) | ||||
| July 31 | B. Crane, capital | 16900 | ||
| B. Crane drawings | 16900 | |||
| (To close drawings account) |
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