•
•
•
•
•
2.
4.
6.
Balances of revenue and expense accounts are transferred to Income Summary. Next the balance of the
Income Summary account is transferred to the owner’s equity account.
Adjustments columns of the worksheet.
bl
Source document info to general journal, to general ledger, to worksheet, to financial statements.
Carnival has 80,000 employees worldwide.
Of the 3 million passengers Carnival serves annually, approximately 1,000,000 are seniors and
500,000 are children.
Carnival became a publicly traded company in 1987.
Carnival Corporation is comprised of distinct brands operating in North and South America,
the United Kingdom, Germany, Italy, France, Spain, and Australia, which account for nearly
90 percent of cruise passengers worldwide.
Carnival Corporation operates 84 ships with 21 new vessels scheduled for delivery between now and
2011.
CHAPTER 6
CLOSING ENTRIES AND THE POSTCLOSING TRIAL
BALANCE
Chapter Opener: Thinking Critically
Students should recognize that financial statements can be used to evaluate net profit or loss, return on
investments, expense trends, or growth in company net assets. The income statement is used to measure net
income or loss, while the balance sheet can be used to measure growth in assets or liabilities. Executives
and managers would use financial statements to make decisions about expanding business, investing in new
ventures, or hiring new employees.
Fast Facts
Managerial Implications: Thinking Critically
8.
10.
(2) journalize
(4) prepare worksheet
(6) journalize and post adjusting entries
(8) prepare post-closing trial balance
Steps to classify, record, and summarize financial data.
Avoids errors, proves total debits and credits are equal after the closing process.
EXERCISE 6.1
PAGE
POST.
REF.
1 1
2 2013 2
3 Dec. 31 48 7 5 0 00 3
4 Income Summar
y
48 7 5 0 00 4
5 5
6 31 27 0 0 0 00 6
7 Depreciation Expense 2 2 5 0 00 7
4
DATE DESCRIPTION DEBIT CREDIT
GENERAL JOURNAL
Fees Income
Closing Entries
Income Summar
y
EXERCISE 6.3
1. Cash 5. Accumulated Depreciation
EXERCISE 6.4
1. B 6. B 11. I, E
EXERCISE 6.5
1. Total revenue for the period is $65,000.
EXERCISE 6.6
PAGE
POST.
REF.
1 1
2 2013 2
3 Mar. 31 401 32500000 3
4 Income Summary 399 32500000 4
5 5
6 31 399 23736000 6
16 Gloria Bahamon, Capital 301 8764000 16
17 17
18 31 Gloria Bahamon, Capital 301 1200000 18
19 Gloria Bahamon, Drawing 302 1200000 19
20 20
Fees Income
Income Summary
DEBIT CREDIT
Closing Entries
GENERAL JOURNAL 4
DATE DESCRIPTION
EXERCISE 6.6 (continued)
ACCOUNT Gloria Bahamon, Capital ACCOUNT NO.
2013
ACCOUNT Gloria Bahamon, Drawing ACCOUNT NO.
ACCOUNT Income Summary ACCOUNT NO.
2013
GENERAL LEDGER
301
302
399
DATE DESCRIPTION
POST.
REF.
DESCRIPTION
POST.
REF.
BALANCE
DEBIT CREDIT
CREDIT
BALANCE
DEBIT CREDIT
CREDIT
DESCRIPTION
DEBIT
DEBIT
POST.
REF.DATE
DATE
CREDIT
BALANCE
DEBIT CREDIT
DEBIT
EXERCISE 6.6 (continued)
ACCOUNT Fees Income ACCOUNT NO.
2013
ACCOUNT Depreciation Expense—Equipment ACCOUNT NO.
ACCOUNT Insurance Expense ACCOUNT NO.
2013
ACCOUNT Rent Expense ACCOUNT NO.
2013
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
POST.
REF. DEBIT
514
DEBIT
DEBIT CREDIT
CREDIT
BALANCE
GENERAL LEDGER
510
BALANC
E
DEBIT CREDIT
401
CREDITDATE DESCRIPTION
DEBIT CREDIT
511
BALANCE
DEBIT CREDIT
DATE
DATE DESCRIPTION
POST.
REF.
DESCRIPTION
POST.
REF.
EXERCISE 6.6 (continued)
ACCOUNT Salaries Expense ACCOUNT NO.
ACCOUNT Supplies Expense ACCOUNT NO.
2013
ACCOUNT Telephone Expense ACCOUNT NO.
2013
ACCOUNT Utilities Expense ACCOUNT NO.
2013
GENERAL LEDGER
518
519
523
BALANCE
DEBIT CREDIT
517
CREDIT
DATE DESCRIPTION
POST.
REF. DEBIT
DATE DESCRIPTION
POST.
REF. DEBIT
BALANCE
DEBIT CREDIT
CREDIT
BALANC
E
DEBIT CREDIT
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
CREDIT
BALANCE
DEBIT CREDIT
DATE DESCRIPTION
POST.
REF. DEBIT
EXERCISE 6.7
PAGE
POST.
REF.
1 1
2 2013 2
3 Dec. 31 Rosa Escobedo, Capital 27 0 0 0 00 3
Closing Entries
4
DATE DESCRIPTION DEBIT CREDIT
GENERAL JOURNAL
EXERCISE 6.8
Analyze transactions
Journalize transactions
140 Chapter 6 Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved.
PROBLEM 6.1A
PAGE
POST.
REF.
1 1
2 2013 2
3 Jan. 31 2 2 4 0 00 3
DATE DESCRIPTION DEBIT CREDIT
GENERAL JOURNAL
Adjusting Entries
Supplies Expense
3
PROBLEM 6.1A (continued)
PAGE
POST.
REF.
1 1
2 2013 2
3 Jan. 31 9000000 3
4 Income Summary 9000000 4
5 5
6 31 7991000 6
7 Depreciation Expense—Office Equipment 4480 00 7
4
CREDITDEBIT DATE DESCRIPTION
GENERAL JOURNAL
Closing Entries
Fees Income
Income Summary
PROBLEM 6.2A
PAGE
POST.
REF.
1 1
2 2013 2
3 Dec. 31 517 2 4 0 0 00 3
PAGE
POST.
REF.
1 1
2 2013 2
3 Dec. 31 401 75 0 0 0 00 3
4 Income Summary 309 7500000 4
18 18
GENERAL JOURNAL
DEBIT DESCRIPTION
Closing Entries
DATE
3
Adjusting Entries
4
CREDIT
CREDIT
Supplies Expense
DESCRIPTION DEBIT
GENERAL JOURNAL
Fees Income
DATE
PROBLEM 6.2A (continued)
ACCOUNT Supplies ACCOUNT NO.
2013
ACCOUNT Prepaid Advertising ACCOUNT NO.
2013
ACCOUNT Accumulated Depreciation—Equipment ACCOUNT NO.
ACCOUNT Gayle Warrior, Capital ACCOUNT NO.
2013
GENERAL LEDGER
DEBIT CREDIT
BALANCE
DEBIT CREDIT
DATE DESCRIPTION
POST.
REF.
121
BALANCE
DEBIT CREDIT
CREDIT
142
BALANCE
CREDIT
131
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT DEBIT
DATE DESCRIPTION
POST.
REF. DEBIT
DATE DESCRIPTION
POST.
REF. DEBIT
BALANCE
DEBIT CREDIT
CREDIT
301
PROBLEM 6.2A (continued)
ACCOUNT Gayle Warrior, Drawing ACCOUNT NO.
2013
ACCOUNT Income Summary ACCOUNT NO.
2013
ACCOUNT Fees Income ACCOUNT NO.
2013
31 Closing J4 75000 00 −0−
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
GENERAL LEDGER
302
DATE DESCRIPTION CREDIT
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT
401
CREDITDEBIT
BALANCE
399
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
PROBLEM 6.2A (continued)
ACCOUNT Salaries Expense ACCOUNT NO.
2013
ACCOUNT Utilities Expense ACCOUNT NO.
2013
ACCOUNT Supplies Expense ACCOUNT NO.
2013
ACCOUNT Depreciation Expense—Equipment ACCOUNT NO.
2013
511
DATE DESCRIPTION
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
POST.
REF.
POST.
REF. DEBIT
GENERAL LEDGER
523
CREDIT
BALANCE
DEBIT CREDIT
517
CREDIT
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
DEBIT
DATE DESCRIPTION
BALANCE
DEBIT CREDIT
514
CREDIT
BALANCE
DEBIT CREDIT
BALANCE
DEBIT
PROBLEM 6.2A (continued)
ACCOUNT Advertising Expense ACCOUNT NO.
2013
Cash 9240000
Accounts Receivable 1200000
Supplies 360000
Prepaid Advertising 21000 00
GENERAL LEDGER
The Warrior Group
Post-closing Trial Balance
December 31, 2013
DESCRIPTION
POST.
REF. DEBIT
DEBIT CREDITACCOUNT NAME
526
CREDIT
BALANCE
DEBIT CREDIT
DATE
PROBLEM 6.3A
PAGE
1 1
2 2013 2
3 Dec. 31 Fees Income 13800000 3
4 Income Summary 13800000 4
4
DEBIT
GENERAL JOURNAL
DATE DESCRIPTION
401
Closing Entries
CREDIT
POST.
REF.
399
PROBLEM 6.3A (continued)
ACCOUNT Monica Cavazos, Drawing ACCOUNT NO.
2013
ACCOUNT Income Summary ACCOUNT NO.
2013
ACCOUNT Fees Income ACCOUNT NO.
2013
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
POST.
REF. DEBITDATE DESCRIPTION
CREDIT
BALANCE
DEBIT CREDIT
DATE DESCRIPTION
POST.
REF. DEBIT
CREDIT
BALANCE
GENERAL LEDGER
399
401
302
DATE DESCRIPTION
DEBIT CREDIT
PROBLEM 6.3A (continued)
ACCOUNT Advertising Expense ACCOUNT NO.
2013
ACCOUNT Depreciation Expense—Equipment ACCOUNT NO.
2013
ACCOUNT Rent Expense ACCOUNT NO.
2013
ACCOUNT Salaries Expense ACCOUNT NO.
2013
DATE DESCRIPTION
POST.
REF. DEBIT
DATE DESCRIPTION
POST.
REF. DEBIT
519
511
514
DATE DESCRIPTION
POST.
REF. DEBIT
DATE DESCRIPTION
POST.
REF. DEBIT
BALANCE
DEBIT CREDIT
CREDIT
BALANCE
DEBIT CREDIT
517
GENERAL LEDGER
CREDIT
CREDIT
BALANCE
DEBIT CREDIT
BALANCE
DEBIT CREDIT
CREDIT