The acceptance of consolidation has been decreasing the...

The acceptance of consolidation has been decreasing. The following are selected accounts of Laura Gibson Company on December: Permanent (P) or Temporary (T) Normal Balance (Dr.) or (Cr.) Cash Accounts Receivable Equipment Accounts Payable Common Stock Sales Purchases Rent Expense Utility Expense Selling Expense

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Transcript

00:01 Hello students, here is a question.

00:02 Presented below are the year -end balance at december 31st are lora's laundry services.

00:08 All accounts have normal balances.

00:10 We have the trial balance given in the question.

00:13 So, we have to prepare a closing entries.

00:16 So, let us start solving this problem.

00:19 So, closing entries are prepared at the end of a year to transfer temporary account to permanent account.

00:27 All temporary accounts are transferred to the income summary, which is temporary account and income after the income summary account is closed to owner's equity, which is a permanent account and show in the balance sheet.

00:41 So, let us start preparing the closing entries.

00:48 So, that is nothing but income statement.

00:56 So, before doing a closing entries income statement, so that is the catering services revenue is $200 ,000.

01:04 We have to deduct all the expenses towards that.

01:08 So, the answer comes to 141 ,500.

01:10 We will see in detail in the closing entries.

01:13 The format are date, account title, debit and credit.

01:25 So, this is a journal entry related to laors laundry service.

01:32 So, this journal entry is related to laors laundry services...