EX 4-17 Closing entries with net loss

Grande Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances were taken from the ledger of Grande Services Co.



Gail Sabatini, Capital $842,500 Rent Expense $54,000
Gail Sabatini, Drawing 45,000 Supplies Expense 14,300
Fees Earned 337,900 Miscellaneous Expense 16,200
Wages Expense 277,500



Journalize the four entries required to close the accounts.


Answer:

Closing Entries
July 31 Fees Earned 337,900
Income Summary 337,900
31 Income Summary 362,000
Wages Expense 277,500
Rent Expense 54,000
Supplies Expense 14,300
Miscellaneous Expense 16,200
31 Gail Sabatini, Capital 24,100
Income Summary 24,100
31 Gail Sabatini, Capital 45,000
Gail Sabatini, Drawing 45,000