The Income Statement columns of the work sheet prepared for Jolly Auto Service at current year-end are shown below. In addition, B. Jolly, Capital had a credit balance of $235,000 and B. Jolly, Withdrawals had a debit balance of $40,000 at year-end. Prepare closing journal entries for this company. ? Income Statement?Dr.Cr.Service revenue?$130,200Wages expense$43,100?Rent expense16,200?Insurance expense1,800?Shop supplies expense3,500?Depreciation expense-Shop equipment7,000?Totals$71,600$130,200Net income58,600?Totals$130,200$130,200
What will be an ideal response?
| 31 | Service Revenue | 130,200 | ? |
| Income Summary | ? | 130,200 | |
| 31 | Income Summary | 71,600 | ? |
| ? | Wages expense | ? | 43,100 |
| ? | Rent expense | ? | 16,200 |
| ? | Insurance expense | ? | 1,800 |
| ? | Shop supplies expense | ? | 3,500 |
| ? | Depr. Expense-Shop Equipment | ? | 7,000 |
| 31 | Income Summary | 58,600 | ? |
| ? | B. Jolly, Capital | ? | 58,600 |
| 31 | B. Jolly, Capital | 40,000 | ? |
| ? | B. Jolly, Withdrawals | ? | 40,000 |
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