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  • Exercises On Closing Entries & Reversing Entries

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    Roy Bonitez
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    The bookkeeper was given financial data to prepare closing entries for 2019 including expenses, inventory amounts, capital, drawings, and revenues. Required to prepare the necessary journal closing entries. For the second company, accounts from the adjusted trial balance are provided including accumulated depreciation, expenses, payables, prepaids, income. Required to prepare reversing entries to reset the accounts for the new period.

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    Exercises on Closing Entries & Reversing Entries

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    The bookkeeper was given financial data to prepare closing entries for 2019 including expenses, inventory amounts, capital, drawings, and revenues. Required to prepare the necessary journal closing entries. For the second company, accounts from the adjusted trial balance are provided including accumulated depreciation, expenses, payables, prepaids, income. Required to prepare reversing entries to reset the accounts for the new period.

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    © All Rights Reserved
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    488 views3 pages

    Exercises On Closing Entries & Reversing Entries

    Uploaded by

    Roy Bonitez
    The bookkeeper was given financial data to prepare closing entries for 2019 including expenses, inventory amounts, capital, drawings, and revenues. Required to prepare the necessary journal closing entries. For the second company, accounts from the adjusted trial balance are provided including accumulated depreciation, expenses, payables, prepaids, income. Required to prepare reversing entries to reset the accounts for the new period.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 3

    Exercises on Closing Entries

    A. Myra, the firm’s bookkeeper was given the following selected data to prepare closing entries for year
    2019.

    Advertising Expense 12,580


    Depreciation Expense- Buildings 120,000
    Depreciation Expense- Office Furniture &
    Equipment 20,500
    Doubtful Accounts Expense 15,850
    Freight in 5,210
    Freight out 10,130
    Interest Expense 7,520
    Interest Income 12,800
    Merchandise Inventory, January 1, 2019 102,100
    Merchandise Inventory, December 31, 2019 75,450
    Myra, Capital ?
    Myra, Drawing 20,000
    Office Supplies expense 4,120
    Purchase Discounts 5,405
    Purchase Returns and Allowances 9,110
    Purchases 395,250
    Office Salaries 42,500
    Sales 725,100
    Sales Discounts 9,230
    Sales Returns & Allowances 3,580
    Sales Salaries 22,360
    SSS & Philhealth Premium Expense 4,290

    Required: Prepare the necessary journal closing entries


    B. Closing Entries and Post-Closing Trial Balance

    The following accounts of PINKY TRADING were taken from the adjusted trial balance as of December
    31, 2019:

    Account Titles Debit Credit


    Accounts Payable P 70,800
    Accounts Receivable P 60,200
    Accumulated Depreciation-Equipment 80,000
    Advertising Expense 5,000
    Communication Expense 14,500
    Cash 25,000
    Depreciation Expense 20,000
    Equipment 400,000
    Merchandise Inventory, beginning 156,000
    Freight in 5,000
    Freight out 10,000
    Light and Water Expense 35,000
    Pinky, Capital 300,000
    Pinky, Drawing 10,000
    Purchases 370,000
    Purchases Discounts 5,000
    Purchases Returns and Allowances 10,000
    Rent Expense 60,000
    Sales 800,000
    Sales Discounts 12,000
    Sales Returns and Allowances 8,000
    Salaries Expense 55,000
    Supplies Expense 20,100 _______
    P1,265,800 P1,265,800
    ========= ========
    The merchandise inventory, end amounted to P80,150.

    Required: Prepare the following:

    1. Closing journal entries for the year ended, December 31, 2019.
    2. Post-Closing Trial Balance as of December 31, 2019.
    Exercise on Reversing Entries

    After the preparation of the year-end adjustments, the balances of selected accounts of ALFREDO
    TRADING were as follows:

    Unadjusted Adjusted
    balances balances
    1 Doubtful Accounts P3,450
    Expense
    Allowance for Doubtful P 34,500 P37,950
    Accounts
    2 Depreciation Expense- 49,560
    Buildings
    Accumulated 165,200 214,760
    Depreciation- Buildings
    3 Depreciation expense- 20,100
    Office equipment
    Accumulated 60,200 80,300
    Depreciation-Equipment
    4 Interest Expense 2,400 5,400
    Interest Payable 3,000
    5 Prepaid Insurance 15,300
    Insurance Expense 35,800 20,500
    6 Salaries Expense 25,200 34,800
    Salaries Payable 9,600
    7 Interest Receivable 2,200
    Interest Income 12,800 15,000
    8 Unearned Rent Income 40,500 30,500
    Rent Income 10,000

    Required: Prepare the reversing journal entries at the start the following accounting period.

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