Question

After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Nuclear Landscaping Co.:
Felix Godwin, Capital $964,080
Felix Godwin, Drawing 28,000
Fees Earned 632,080
Wages Expense 494,400
Rent Expense 118,700
Supplies Expense 44,495
Miscellaneous Expense 14,830
Journalize the two entries required to close the accounts.

Answer 1

Answer: The answer is given below

Explanation:

It should be noted that during the calculation, the total expense was gotten as $672,425 and this includes the rent, wages, supplies and miscellaneous expenses. The expense was higher than the fees earned of $632,080 by $40,345. Therefpre, the loss of $40,345 decreases the capital account and the capital account was debited.

Lastly, while close the drawings account, the capital account was debited and the drawings account was credited by $28,000.

Check the attachment for the journal