After the accounts have been adjusted at August 31, the end of the fiscal year, the following balances were taken from the ledger of Marcy Delivery Services Co

After the accounts have been adjusted at August 31, the end of the fiscal year, the following balances were taken from the ledger of Marcy Delivery Services Co.:



Rita Sands, Capital $1,400,000
Rita Sands, Drawing 55,000
Fees Earned 880,000
Wages Expense 524,000
Rent Expense 80,000
Supplies Expense 16,000
Miscellaneous Expense 9,000





Journalize the four entries required to close the accounts


Answer:

Closing Entries
Aug. 31 Fees Earned 880,000
Income Summary 880,000
31 Income Summary 629,000
Wages Expense 524,000
Rent Expense 80,000
Supplies Expense 16,000
Miscellaneous Expense 9,000
31 Income Summary 251,000
Rita Sands, Capital 251,000
31 Rita Sands, Capital 55,000
Rita Sands, Drawing 55,000