Asked by Joseph Hernandez on May 04, 2024
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Prepare the necessary closing entries based on the following selected accounts. Accumulated Depreciation$10,000Depreciation Expense 6,000 Owner’s Capital 20,000Owner’s Drawings 9,000 Salaries and Wages Expense 19,000 Service Revenue40,000\begin{array}{lrr} \text { Accumulated Depreciation} &\$10,000\\ \text {Depreciation Expense } &6,000\\ \text { Owner's Capital } &20,000\\ \text {Owner's Drawings } &9,000\\ \text { Salaries and Wages Expense } &19,000\\ \text { Service Revenue} &40,000\\\end{array} Accumulated DepreciationDepreciation Expense Owner’s Capital Owner’s Drawings Salaries and Wages Expense Service Revenue$10,0006,00020,0009,00019,00040,000
Closing Entries
Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts in preparation for the new accounting period.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, representing the wear and tear over time.
Service Revenue
Income earned by a company for the services it provides to its clients.
- Initiate the preparation of adjusting and closing entries.
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Learning Objectives
- Initiate the preparation of adjusting and closing entries.
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