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  • 3 Closing Entries

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    Ryoma Echizen
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    XYZ Consulting Inc.'s adjusted trial balance on December 31, 2024 shows revenues, expenses, and distributions for the fiscal year. To prepare the company's financial statements, closing entries are needed to zero out temporary accounts and move their balances to permanent accounts like retained earnings.

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    XYZ Consulting Inc.'s adjusted trial balance on December 31, 2024 shows revenues, expenses, and distributions for the fiscal year. To prepare the company's financial statements, closing entries are needed to zero out temporary accounts and move their balances to permanent accounts like retained earnings.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    26 views2 pages

    3 Closing Entries

    Uploaded by

    Ryoma Echizen
    XYZ Consulting Inc.'s adjusted trial balance on December 31, 2024 shows revenues, expenses, and distributions for the fiscal year. To prepare the company's financial statements, closing entries are needed to zero out temporary accounts and move their balances to permanent accounts like retained earnings.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 2

    3-4A – Closing Entries

    Below is XYZ Consulting Inc.’s adjusted trial balance on its fiscal year end: December 31, 2024.

    Adjusted TB
    DR CR

    Cash $125,000

    Accounts receivable 22,000

    Supplies 15,000

    Prepaid rent 8,000

    Equipment 225,000

    Accumulated depreciation - equipment $52,000

    Accounts payable 9,000

    Salaries payable 1,000

    Unearned consulting revenue 10,000

    Notes payable 85,000

    Common shares 4,000

    Retained earnings 184,000

    Dividends 2,000

    Consulting revenue 350,000

    Wages expense 140,000

    Interest expense 4,000

    Depreciation expense 9,000

    Repairs expense 12,000

    Insurance expense 26,000

    Rent expense 96,000

    Income tax expense 12,000

    Total $696,000 $696,000 Required:


    Based on the adjusted trial balance above, prepare the necessary closing entry/entries.

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