After all, adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona's Designs:Accounts Payable $27.600Accounts Receivable 64,500Accumulated Depreciation 73,325Cash 17,150Depreciation Expense 13,500Equipment 165,000Insurance Expense 2,510Prepaid Insurance 6,275Rent Expense $32,700Salary Expense 41,390Salaries Payable 8,150Service Revenue 186,000Supplies 1,500Supplies Expense 2,500Common Stock 79,950Dividends 48,000Retained Earnings 20,000Journalize the entries to close the appropriate accounts for the month

Dr Service Revenue 186,000

Cr Income Summary 186,000

Dr Income Summary $92,600

Cr Rent Expense 32,700

Cr Salary Expense 41,390

Cr Depreciation Expense 13,500

Cr Supplies Expense 2,500

Cr Insurance Expense 2,510

Dr Income Summary $93,400

Cr Ramona Cross, Capital $93,400

Dr Ramona Cross, Capital 48,000

Cr Ramona Cross, Drawing 48,000

Explanation:

Preparation of the journal entries to close the appropriate accounts for the month

Dr Service Revenue 186,000

Cr Income Summary 186,000

(Being to close off revenue account)

Dr Income Summary $92,600

(32,700+41,390+13,500+2,500+2,510)

Cr Rent Expense 32,700

Cr Salary Expense 41,390

Cr Depreciation Expense 13,500

Cr Supplies Expense 2,500

Cr Insurance Expense 2,510

(Being to close off expense accounts)

Dr Income Summary $93,400

(186,000-$92,600)

Cr Ramona Cross, Capital $93,400

(Being to close off Income Summary account)

Dr Ramona Cross, Capital 48,000

Cr Ramona Cross, Drawing 48,000

(Being to close off drawing account)

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