Accounting Cycle: Closing Entries & Ledger - Tech Head, Australasian

This document presents a comprehensive solution to a manual accounting practice set, specifically addressing the closing entries within the general journal and their subsequent posting to the general ledger accounts. The practice set, based on the Tech Head, Australasian Edition, requires the recording of closing entries for various revenue and expense accounts, including Sales Revenue, Sales Returns and Allowances, Cost of Sales, Advertising Expense, Wages Expense, Rent Expense, and others. These entries are then posted to the respective general ledger accounts such as Retained Earnings, Profit and Loss Summary, Sales Revenue, and various expense accounts. The solution includes adjusting entries for depreciation, accrued expenses, and prepaid expenses, ensuring all accounts are properly closed and balances are transferred to Retained Earnings via the Profit and Loss Summary account. The final post-closing balances are recorded in each ledger, preparing the accounts for the next accounting period. Desklib offers this document as a valuable resource for students seeking to understand and master the closing process in manual accounting.

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Manual Accounting Practice Set
Tech Head, Australasian Edition 3
Feedback: Closing entries
This is a feedback page. Please review this page carefully because later pages in this practice set build on the feedback
provided here. After you have reviewed your feedback page, click Continue at the bottom of this page to move on to the
next page of your practice set.
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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Special Journals General Journal Subsidiary Ledgers General Ledger
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6/6/2018 Closing entries
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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
GENERAL JOURNAL
Date Account and Explanation Post
Ref. Debit Credit
Jun 30 Profit and Loss Summary 310 279468
401 0 5976
500 0 210584
511 0 5000
516 0 56025
540 0 4300
541 0

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GENERAL JOURNAL
Date Account and Explanation Post
Ref. Debit Credit
Jun 20 Sales Returns and Allowances 401 5,976
Jun 20 ARC - Radio Hut 110/110-3 5,976
(sales return)
Jun 20 Inventory 120 3,672
Jun 20 Cost of Sales 500 3,672
(sales return)
Jun 28 APC - Mega Tech 210/210-5 2,832
Jun 28 Inventory 120 2,832
(purchase return)
Jun 30 Depn Expense: Cash Registers 560 156
Jun 30 Accum Depn: Cash Registers 151 156
(adjusting entry)
Jun 30 Depn Expense: Store Fixtures 561 361
Jun 30 Accum Depn: Store Fixtures 161 361
(adjusting entry)
Jun 30 Water Expense 542 115
Jun 30 Water Payable 222 115
(adjusting entry)
Jun 30 Electricity Expense 541 217
Jun 30 Electricity Payable 221 217
(adjusting entry)
Jun 30 Wages Expense 516 11,340
Jun 30 Wages Payable 220 11,340
(adjusting entry)
Jun 30 Interest Expense 571 235
Jun 30 Interest Payable 225 235
(adjusting entry)
Jun 30 Office Supplies Expense 544 102
Jun 30 Office Supplies 130 102
(adjusting entry)

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(adjusting entry)
Jun 30 Advertising Expense 511 5,000
Jun 30 Prepaid Advertising 141 5,000
(adjusting entry)
Jun 30 Insurance Expense 543 930
Jun 30 Prepaid Insurance 142 930
(adjusting entry)
Jun 30 Profit and Loss Summary 310 279,468
Jun 30 Sales Returns and Allowances 401 5,976
Jun 30 Cost of Sales 500 201,584
Jun 30 Advertising Expense 511 5,000
Jun 30 Wages Expense 516 56,025
Jun 30 Rent Expense 540 4,300
Jun 30 Electricity Expense 541 217
Jun 30 Water Expense 542 115
Jun 30 Insurance Expense 543 930
Jun 30 Office Supplies Expense 544 102
Jun 30 Salary Expense 545 4,000
Jun 30 Depn Expense: Cash Registers 560 156
Jun 30 Depn Expense: Store Fixtures 561 361
Jun 30 Interest Expense 571 235
Jun 30 Bank Charges 572 8
Jun 30 Discount Allowed 573 459
(Closing entry to debit the Profit and Loss Summary account)
Jun 30 Sales Revenue 400 330,984
Jun 30 Discount Received 402 741
Jun 30 Interest Revenue 403 772
Jun 30 Profit and Loss Summary 310 332,497
(Closing entry to credit the Profit and Loss Summary account)
Jun 30 Profit and Loss Summary 310 53,029
Jun 30 Retained Earnings 301 53,029
(To close the balance of the Profit and Loss Summary
account)
(Q=960-301.RetainedProfits_ClosingEntries)
GENERAL LEDGER
Account: Retained Earnings
Account No. 301

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Date Description Ref. Debit Credit Balance
May 31 Balance 239,357 CR
Jun 30 treansfer from pl GJ 0 53029 53029 CR
Jun 30
Jun 30
Jun 30 Post-Closing Balance 292386 CR
Feedback
Account: Retained Earnings
Account No. 301
Date Description Ref. Debit Credit Balance
May 31 Balance 239,357 CR
Jun 30 Transfer from Profit and Loss Summary GJ 53,029 292,386 CR
Jun 30 Post-Closing Balance 292,386 CR
(Q=960-310.ProfitAndLossSummary_ClosingEntries)
Account: Profit and Loss Summary
Account No. 310
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 cl debit GJ 279468 0 279468 DR
Jun 30 cl credit GJ 0 332497 53029 CR
Jun 30 retain earning GJ 53029 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 279,468 279,468 DR
Jun 30 Closing entry to credit the Profit and Loss Summary account GJ 332,497 53,029 CR
Jun 30 Transfer to Retained Earnings GJ 53,029 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

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Jun 30 Total from sales journal SJ 234,776 234,776 CR
Jun 30 Total from cash receipts journal CRJ 96,208 330,984 CR
Jun 30 closing entry GJ 330984 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 234,776 234,776 CR
Jun 30 Total from cash receipts journal CRJ 96,208 330,984 CR
Jun 30 Closing entry GJ 330,984 0
Jun 30 Post-Closing Balance 0
(Q=960-401.SalesReturnsAndAllowances_ClosingEntries)
Account: Sales Returns and Allowances
Account No. 401
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 20 Sales return from Radio Hut GJ 5,976 5,976 DR
Jun 30 closing entry GJ 0 5976 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 20 Sales return from Radio Hut GJ 5,976 5,976 DR
Jun 30 Closing entry GJ 5,976 0
Jun 30 Post-Closing Balance 0
(Q=960-402.DiscountReceived_ClosingEntries)
Account: Discount Received
Account No. 402

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Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 741 741 CR
Jun 30 closing entry GJ 741 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
May 31 Balance 0
Jun 30 Total from cash payments journal CPJ 741 741 CR
Jun 30 Closing entry GJ 741 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 772 772 CR
Jun 30 closing entry GJ 772 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 772 772 CR
Jun 30 Closing entry GJ 772 0
Jun 30 Post-Closing Balance 0
(Q=960-500.CostOfSales_ClosingEntries)
Account: Cost of Sales
Account No. 500

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Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 20 Sales return from Radio Hut GJ 3,672 3,672 CR
Jun 30 Total from sales journal SJ 143,600 139,928 DR
Jun 30 Total from cash receipts journal CRJ 61,656 201,584 DR
Jun 30 closing entry GJ 0 201584 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Cost of Sales
Account No. 500
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 20 Sales return from Radio Hut GJ 3,672 3,672 CR
Jun 30 Total from sales journal SJ 143,600 139,928 DR
Jun 30 Total from cash receipts journal CRJ 61,656 201,584 DR
Jun 30 Closing entry GJ 201,584 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 5,000 5,000 DR
Jun 30 closing entry GJ 0 5000 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 5,000 5,000 DR
Jun 30 Closing entry GJ 5,000 0
Jun 30 Post-Closing Balance 0

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(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 44,685 44,685 DR
Jun 30 Accrued wages expense GJ 11,340 56,025 DR
Jun 30 closing entry GJ 0 56025 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 44,685 44,685 DR
Jun 30 Accrued wages expense GJ 11,340 56,025 DR
Jun 30 Closing entry GJ 56,025 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 4,300 4,300 DR
Jun 30 closing entry GJ 0 4300 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 4,300 4,300 DR
Jun 30 Closing entry GJ 4,300 0

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Jun 30 Post-Closing Balance 0
(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 217 217 DR
Jun 30 closing entry GJ 0 217 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 217 217 DR
Jun 30 Closing entry GJ 217 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 115 115 DR
Jun 30 closing entry GJ 0 115 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
Jun 30 Accrued water expense GJ 115 115 DR
Jun 30 Closing entry GJ 115 0

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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 930 930 DR
Jun 30 closing entry GJ 0 930 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 930 930 DR
Jun 30 Closing entry GJ 930 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 102 102 DR
Jun 30 closing entry GJ 0 102 0
Jun 30
Jun 30
Jun 30 Post-Closing Balance 0
Feedback
Account: Office Supplies Expense
Account No. 544
Date Description Ref. Debit Credit Balance
May 31 Balance 0
Jun 30 Supplies used GJ 102 102 DR
Jun 30 Closing entry GJ 102 0

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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 4,000 4,000 DR
Jun 30 closing entry GJ 0 4000 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 4,000 4,000 DR
Jun 30 Closing entry GJ 4,000 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 156 156 DR
Jun 30 closing entry GJ 0 156 0
Jun 30
Jun 30
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 156 156 DR
Jun 30 Closing entry GJ 156 0