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Following are Income Statement columns from a 10-column work sheet for Browns Bike Rental Company....

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Accounting

Following are Income Statement columns from a 10-column work sheet for Browns Bike Rental Company. Account Title Debit Credit Rental revenue 105,000 Salaries expense 46,620 Insurance expense 6,615 Supplies expense 15,435 Bike repair expense 3,255 Depreciation expenseBikes 20,055 (1) 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, H. Brown, did not make any withdrawals this period.

Following are Income Statement columns from a 10-column work sheet for Browns Bike Rental Company.

Account Title Debit Credit
Rental revenue 105,000
Salaries expense 46,620
Insurance expense 6,615
Supplies expense 15,435
Bike repair expense 3,255
Depreciation expenseBikes 20,055

(1) 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, H. Brown, did not make any withdrawals this period.

  • Record the entry to close revenue accounts.
  • Record the entry to close expense accounts.
  • Record the entry to close income summary account.

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