Closing entries - Manual Accounting Practice Set iCandy, Australasian Edition 3

Learn how to record closing entries in the general journal and post them to the relevant general ledger accounts. Get step-by-step instructions and feedback on your progress. Practice set for Manual Accounting Practice Set iCandy, Australasian Edition 3

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Manual Accounting Practice Set
iCandy, Australasian Edition 3
Feedback: Closing entries
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In this stage of the accounting cycle, you are asked to record closing entries in the general journal and then post them to
the general ledger accounts. This step must be completed to prepare the accounts for the next accounting period.
Instructions for closing entries
Record closing entries in the general journal.
Post the closing entries from the general journal to the relevant general ledger accounts
Record the final closing balance of each ledger account in the Post-Closing Balance row of each ledger, even for
ledgers with a balance of zero. Although each ledger already has a running balance, the Post-Closing Balance row
must still be filled out in order receive full points.
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Remember:
Enter all answers to the nearest whole dollar.
You are also required to apply the journals and ledgers instructions provided in previous weeks.
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Sales Returns and Allowances
Cost of Sales
Advertising Expense
Wages Expense
Rent Expense
Electricity Expense
Water Expense
Insurance Expense
Office Supplies Expense
Salary Expense
Depn Expense: Cash Registers
Depn Expense: Store Fixtures
Interest Expense
Bank Charges
Discount Allowed
Sales Revenue
Discount Received
Interest Revenue
Before pressing the Submit answers button, we recommend that you click the Show All tab and check that all relevant
accounting records have been completed.
Special Journals General Journal Subsidiary Ledgers General Ledger
GENERAL JOURNAL
Date Account and Explanation Post
Ref. Debit Credit
Jun 30 Profit and Loss Summary 310 78989
401 0 1368
500 0 52408
511 0 4000
516 0 8691
540 0 4800
541 0 188
542 0 117
543 0 830
544 0 238
545 0 5300
560 0 117
561 0 407
571 0 210
572 0 11
573 0 304
(Closing entry to debit the Profit and Loss
Summary account)
Jun 30 400 93920 0
402 66 0
403 562 0
Profit and Loss Summary 310 94548
(Closing entry to credit the Profit and Loss
Show All

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Summary account)
Jun 30 Profit and Loss Summary 310 15559
Retained Earnings 301 15559
(To close the balance of the Profit and Loss
Summary account)
Feedback
GENERAL JOURNAL
Date Account and Explanation Post
Ref. Debit Credit
Jun 21 Sales Returns and Allowances 401 1,368
Jun 21 ARC - Mercury Square 110/110-3 1,368
(sales return)
Jun 21 Inventory 120 792
Jun 21 Cost of Sales 500 792
(sales return)
Jun 28 APC - Brennan Imports Group 210/210-5 1,200
Jun 28 Inventory 120 1,200
(purchase return)
Jun 30 Depn Expense: Cash Registers 560 117
Jun 30 Accum Depn: Cash Registers 151 117
(adjusting entry)
Jun 30 Depn Expense: Store Fixtures 561 407
Jun 30 Accum Depn: Store Fixtures 161 407
(adjusting entry)
Jun 30 Water Expense 542 117
Jun 30 Water Payable 222 117
(adjusting entry)
Jun 30 Electricity Expense 541 188
Jun 30 Electricity Payable 221 188
(adjusting entry)

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Jun 30 Wages Expense 516 1,800
Jun 30 Wages Payable 220 1,800
(adjusting entry)
Jun 30 Interest Expense 571 210
Jun 30 Interest Payable 225 210
(adjusting entry)
Jun 30 Office Supplies Expense 544 238
Jun 30 Office Supplies 130 238
(adjusting entry)
Jun 30 Rent Expense 540 4,800
Jun 30 Prepaid Rent 140 4,800
(adjusting entry)
Jun 30 Advertising Expense 511 4,000
Jun 30 Prepaid Advertising 141 4,000
(adjusting entry)
Jun 30 Insurance Expense 543 830
Jun 30 Prepaid Insurance 142 830
(adjusting entry)
Jun 30 Profit and Loss Summary 310 78,989
Jun 30 Sales Returns and Allowances 401 1,368
Jun 30 Cost of Sales 500 52,408
Jun 30 Advertising Expense 511 4,000
Jun 30 Wages Expense 516 8,691
Jun 30 Rent Expense 540 4,800
Jun 30 Electricity Expense 541 188
Jun 30 Water Expense 542 117
Jun 30 Insurance Expense 543 830
Jun 30 Office Supplies Expense 544 238
Jun 30 Salary Expense 545 5,300
Jun 30 Depn Expense: Cash Registers 560 117
Jun 30 Depn Expense: Store Fixtures 561 407
Jun 30 Interest Expense 571 210
Jun 30 Bank Charges 572 11
Jun 30 Discount Allowed 573 304
(Closing entry to debit the Profit and Loss Summary account)

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Jun 30 Sales Revenue 400 93,920
Jun 30 Discount Received 402 66
Jun 30 Interest Revenue 403 562
Jun 30 Profit and Loss Summary 310 94,548
(Closing entry to credit the Profit and Loss Summary account)
Jun 30 Profit and Loss Summary 310 15,559
Jun 30 Retained Earnings 301 15,559
(To close the balance of the Profit and Loss Summary
account)
(Q=960-301.RetainedProfits_ClosingEntries)
GENERAL LEDGER
Account: Retained Earnings
Account No. 301
Date Description Ref. Debit Credit Balance
May 31 Balance 79,531 CR
Jun 30 Net Profit Transferred GJ 0 15559 95090 CR
Jun 30
Jun 30
Jun 30 Post-Closing Balance 95090 CR
Feedback
Account: Retained Earnings
Account No. 301
Date Description Ref. Debit Credit Balance
May 31 Balance 79,531 CR
Jun 30 Transfer from Profit and Loss Summary GJ 15,559 95,090 CR
Jun 30 Post-Closing Balance 95,090 CR
(Q=960-310.ProfitAndLossSummary_ClosingEntries)
Account: Profit and Loss Summary
Account No. 310
Date Description Ref. Debit Credit Balance
May 31 Balance 0

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Jun 30 Total Revenues GJ 0 94548 94548 CR
Jun 30 Total Expenses GJ 78989 0 15559 CR
Jun 30 Net Profit for the period GJ 15559 0 0
Jun 30 Post-Closing Balance 0
Feedback
Account: Profit and Loss Summary
Account No. 310
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Closing entry to debit the Profit and Loss Summary account GJ 78,989 78,989 DR
Jun 30 Closing entry to credit the Profit and Loss Summary account GJ 94,548 15,559 CR
Jun 30 Transfer to Retained Earnings GJ 15,559 0
Jun 30 Post-Closing Balance 0
(Q=960-400.SalesRevenue_ClosingEntries)
Account: Sales Revenue
Account No. 400
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from sales journal SJ 52,040 52,040 CR
Jun 30 Total from cash receipts journal CRJ 41,880 93,920 CR
Jun 30 Transferred to P/L A/c. GJ 93920 0 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Sales Revenue
Account No. 400
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from sales journal SJ 52,040 52,040 CR
Jun 30 Total from cash receipts journal CRJ 41,880 93,920 CR
Jun 30 Closing entry GJ 93,920 0
Jun 30 Post-Closing Balance 0

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(Q=960-401.SalesReturnsAndAllowances_ClosingEntries)
Account: Sales Returns and Allowances
Account No. 401
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 21 Sales return from Mercury Square GJ 1,368 1,368 DR
Jun 30 Transferred to P/L A/c. GJ 0 1368 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Sales Returns and Allowances
Account No. 401
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 21 Sales return from Mercury Square GJ 1,368 1,368 DR
Jun 30 Closing entry GJ 1,368 0
Jun 30 Post-Closing Balance 0
(Q=960-402.DiscountReceived_ClosingEntries)
Account: Discount Received
Account No. 402
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 66 66 CR
Jun 30 Transferred to P/L A/c. GJ 66 0 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Discount Received
Account No. 402
Date Description Ref. Debit Credit Balance

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May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 66 66 CR
Jun 30 Closing entry GJ 66 0
Jun 30 Post-Closing Balance 0
(Q=960-403.InterestRevenue_ClosingEntries)
Account: Interest Revenue
Account No. 403
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Interest received from the bank CRJ 562 562 CR
Jun 30 Transferred to P/L A/c. GJ 562 0 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Interest Revenue
Account No. 403
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Interest received from the bank CRJ 562 562 CR
Jun 30 Closing entry GJ 562 0
Jun 30 Post-Closing Balance 0
(Q=960-500.CostOfSales_ClosingEntries)
Account: Cost of Sales
Account No. 500
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 21 Sales return from Mercury Square GJ 792 792 CR
Jun 30 Total from sales journal SJ 28,592 27,800 DR
Jun 30 Total from cash receipts journal CRJ 24,608 52,408 DR
Jun 30 Transferred to P/L A/c. GJ 0 52408 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0

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Feedback
Account: Cost of Sales
Account No. 500
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 21 Sales return from Mercury Square GJ 792 792 CR
Jun 30 Total from sales journal SJ 28,592 27,800 DR
Jun 30 Total from cash receipts journal CRJ 24,608 52,408 DR
Jun 30 Closing entry GJ 52,408 0
Jun 30 Post-Closing Balance 0
(Q=960-511.AdvertisingExpense_ClosingEntries)
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Benefits consumed GJ 4,000 4,000 DR
Jun 30 Transferred to P/L A/c. GJ 0 4000 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Advertising Expense
Account No. 511
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Benefits consumed GJ 4,000 4,000 DR
Jun 30 Closing entry GJ 4,000 0
Jun 30 Post-Closing Balance 0
(Q=960-516.WagesExpense_ClosingEntries)
Account: Wages Expense
Account No. 516
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 6,891 6,891 DR

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Jun 30 Accrued wages expense GJ 1,800 8,691 DR
Jun 30 Transferred to P/L A/c. GJ 0 8691 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Wages Expense
Account No. 516
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 6,891 6,891 DR
Jun 30 Accrued wages expense GJ 1,800 8,691 DR
Jun 30 Closing entry GJ 8,691 0
Jun 30 Post-Closing Balance 0
(Q=960-540.RentExpense_ClosingEntries)
Account: Rent Expense
Account No. 540
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Rent Expired GJ 4,800 4,800 DR
Jun 30 Transferred to P/L A/c. GJ 0 4800 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Rent Expense
Account No. 540
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Rent Expired GJ 4,800 4,800 DR
Jun 30 Closing entry GJ 4,800 0
Jun 30 Post-Closing Balance 0

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(Q=960-541.ElectricityExpense_ClosingEntries)
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued electricity expense GJ 188 188 DR
Jun 30 Transferred to P/L A/c. GJ 0 188 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Electricity Expense
Account No. 541
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued electricity expense GJ 188 188 DR
Jun 30 Closing entry GJ 188 0
Jun 30 Post-Closing Balance 0
(Q=960-542.WaterExpense_ClosingEntries)
Account: Water Expense
Account No. 542
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued water expense GJ 117 117 DR
Jun 30 Transferred to P/L A/c. GJ 0 117 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Water Expense
Account No. 542
Date Description Ref. Debit Credit Balance
May 31 Balance 0

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Jun 30 Accrued water expense GJ 117 117 DR
Jun 30 Closing entry GJ 117 0
Jun 30 Post-Closing Balance 0
(Q=960-543.InsuranceExpense_ClosingEntries)
Account: Insurance Expense
Account No. 543
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Insurance expired GJ 830 830 DR
Jun 30 Transferred to P/L A/c. GJ 0 830 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Insurance Expense
Account No. 543
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Insurance expired GJ 830 830 DR
Jun 30 Closing entry GJ 830 0
Jun 30 Post-Closing Balance 0
(Q=960-544.SuppliesExpense_ClosingEntries)
Account: Office Supplies Expense
Account No. 544
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Supplies used GJ 238 238 DR
Jun 30 Transferred to P/L A/c. GJ 0 238 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback

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Account: Office Supplies Expense
Account No. 544
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Supplies used GJ 238 238 DR
Jun 30 Closing entry GJ 238 0
Jun 30 Post-Closing Balance 0
(Q=960-545.SalaryExpense_ClosingEntries)
Account: Salary Expense
Account No. 545
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Owner salary CPJ 5,300 5,300 DR
Jun 30 Transferred to P/L A/c. GJ 0 5300 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Salary Expense
Account No. 545
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Owner salary CPJ 5,300 5,300 DR
Jun 30 Closing entry GJ 5,300 0
Jun 30 Post-Closing Balance 0
(Q=960-560.DepreciationExpenseCapitalAsset2_ClosingEntries)
Account: Depn Expense: Cash Registers
Account No. 560
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Depreciation - one month GJ 117 117 DR
Jun 30 Transferred to P/L A/c. GJ 0 117 0
Jun 30
Jun 30

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Jun 30 Post-Closing Balance 0
Feedback
Account: Depn Expense: Cash Registers
Account No. 560
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Depreciation - one month GJ 117 117 DR
Jun 30 Closing entry GJ 117 0
Jun 30 Post-Closing Balance 0
(Q=960-561.DepreciationExpenseCapitalAsset1_ClosingEntries)
Account: Depn Expense: Store Fixtures
Account No. 561
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Depreciation - one month GJ 407 407 DR
Jun 30 Transferred to P/L A/c. GJ 0 407 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Depn Expense: Store Fixtures
Account No. 561
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Depreciation - one month GJ 407 407 DR
Jun 30 Closing entry GJ 407 0
Jun 30 Post-Closing Balance 0
(Q=960-571.InterestExpense_ClosingEntries)
Account: Interest Expense
Account No. 571
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued interest expense GJ 210 210 DR

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Jun 30 Transferred to P/L A/c. GJ 0 210 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Interest Expense
Account No. 571
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Accrued interest expense GJ 210 210 DR
Jun 30 Closing entry GJ 210 0
Jun 30 Post-Closing Balance 0
(Q=960-572.BankCharges_ClosingEntries)
Account: Bank Charges
Account No. 572
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Transaction fee CPJ 11 11 DR
Jun 30 Transferred to P/L A/c. GJ 0 11 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Bank Charges
Account No. 572
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Transaction fee CPJ 11 11 DR
Jun 30 Closing entry GJ 11 0
Jun 30 Post-Closing Balance 0
(Q=960-573.DiscountAllowed_ClosingEntries)

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Account: Discount Allowed
Account No. 573
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from cash receipts journal CRJ 304 304 DR
Jun 30 Transferred to P/L A/c. GJ 0 304 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Discount Allowed
Account No. 573
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from cash receipts journal CRJ 304 304 DR
Jun 30 Closing entry GJ 304 0
Jun 30 Post-Closing Balance 0
Manual Accounting Practice Set
iCandy, Australasian Edition 3 (VSA3q)
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