The adjusted ledger accounts of RD Consulting on December 31, 2019, appear as follows.

Account Name Balance
Cash 6,800
Accounts Receivable 1,800
Supplies 1,650
Prepaid Insurance 680
Equipment 16,000
Accumulated Depreciation–Equipment 3,050
Accounts Payable 3,000
Roger Dye, Capital 14,700
Roger Dye, Drawing 3,300
Fees Income 15,300
Supplies Expense 730
Insurance Expense 580
Depreciation Expense–Equipment 530
Salaries Expense 3,000
Utilities Expense 980

Prepare the Balance Sheet and Income Statement columns of the worksheet. Prepare the closing entries for RD Consulting on December 31, 2019. All accounts have normal balances and adjusting entries have been made.

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jafruevu jafruevu · Answer 1 · 2020-03-10T05:53:45+01:00

Answer:

See explanation section

Explanation:

Requirement A

Balance Sheet and Income Statement = See image below

Requirement B

RD Consulting

Closing Entries

December 31 Fees Income Debit 15,300

Income Summary Credit 15,300

(To close the revenues)

December 31 Income Summary Debit $5,820

Supplies Expense Credit $730

Insurance Expense Credit 580

Depreciation Expense–Equipment Credit 530

Salaries Expense Credit 3,000

Utilities Expense Credit 980

(To close the expenses)

December 31 Income Summary Debit $9,480

Roger Dye, Capital Credit $9,480

($15,300 - 5,820) = $9,480

(To close income summary to capital)

December 31 Roger Dye, Capital Debit 3,300

Roger Dye, Drawing Credit 3,300

(To close the drawings to capital)