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Adventure Travel has an Adjusted Trial Balance for Year Ended December 31, 20XX with the following account balances:

DEBITS: Cash: 25,000; Accounts Receivable: 15,000; Office Supplies: 4,300; Office Equipment: 29,600

CREDITS: Accumulated depreciation - office equipment: 5,000; Salaries Payable: 2,800; Long-term notes payable: 22,200; Common Stock: 20,000; Retained Earnings: 10,260

DEBIT: Cash Dividends: 1,000

CREDITS: Fees Earned: 75,000

DEBITS: Salaries Expense: 32,800; Rent Expense: 16,800; Depreciation expense - office equipment: 3,960; Advertising expense: 4,000; Office supplies expense: 2,800.

Total Debits = 135,260; Total Credits = 135,260

You have prepared the financial statements for December 20XX. Now, it is time to make the closing entries.

We will close the expense accounts second: what dollar amount will I enter for the Income Summary account? Specify as a whole number.

Respuesta :

anthougo

The dollar amount for the Income Summary account for expenses in making the closing entries is $60,360.

What are closing entries?

Closing entries are the end-of-the-period journal entries made to transfer the temporary accounts to the Income Summary.

The closing entries are:

  1. Revenue to income summary
  2. Expenses to income summary
  3. Income summary (net income or loss) to retained earnings
  4. Dividends to retained earnings.

How will the closing entry be for expenses?

The closing entry for expenses will be as follows:

Debit Income Summary $60,360

Credit:

  Salaries Expense: 32,800

  Rent Expense: 16,800

  Depreciation expense - office equipment: 3,960

  Advertising expense: 4,000

  Office supplies expense: 2,800

  • To close the expenses to the Income Summary account.

Data and Calculations:

Salaries Expense: 32,800

Rent Expense: 16,800

Depreciation expense - office equipment: 3,960

Advertising expense: 4,000

Office supplies expense: 2,800

Total expenses = $60,360

Thus, the dollar amount for the Income Summary account for expenses in making the closing entries is $60,360.

Learn more about closing entries at https://brainly.com/question/14675640

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