Respuesta :
Answer:
Using the adjusted balances, give the closing entry for the current year.
Explanation:
1
Db Insurance expense 6000
Cr Prepaid expenses 6000
2
Db Wages payable 4000
Cr Cash 4000
3
Db Depreciation expense 9000
Cr Accumulate depreciation 9000
4
Db Income tax expense 7000
Cr Tax payable 7000
Answer: Please refer to the explanation section for journals
Explanation:
DR = DEBIT CR = CREDIT
DR Insurance expense 6000
CR Prepaid insurance 6000
expired insurance expense. prepaid asset account decreases on the credit side .The Prepaid insurance asset should be reduced when insurance expires.
DR Wages expense 4000
CR Wages Payable 4000
wages payable (liability) increases because of wages incurred during the year increase .Wages payable account increases on the credit side
DR Depreciation expense 9000
CR Accumulated Depreciation 9000
depreciation expense increase the accumulated depreciation account
accumulated depreciation account increases on the credit side
DR Income Tax expense 7000
CR Income tax payable (liability) 7000
Income tax expense incurred during the year.
income tax expense incurred during the year increases income tax payable (liability) . Income tax payable increases on the credit side
