Page 160 - Accounting Principles (A Business Perspective)

4. Completing the accounting cycle

After they have been closed, MicroTrain's expense accounts appear as follows. Note that each account has a zero
balance after closing.
Advertising Expense
(Dr) Account No. 505 (Cr.)
Bal. before ■ 50 2010 ■ ■
closing Dec. 31 To close to
Income

Decreased
Summary 50 by $50

Bal. after —0—
closing
Gas and Oil Expense
(Dr.) Account No. 506 (Cr.)
Bal. before 680 2010
closing
Dec. 31 To close to
Income Decreased
Summary 680 by $680

Bal. after —0—
closing
Salaries Expense
(Dr.) Account No. 507 (Cr.)
Bal. before 3,780 2010
closing Dec. 31 To close to
Income

Decreased
Summary 3,780 by $3,780

Bal. after —0—
closing
Utilities Expense
(Dr.) Account No. 511 (Cr.)
Bal. before 150 2010
closing
Dec. 31 To close to
Income Decreased
Summary 150 by $150

Bal. after —0—
closing
Insurance Expense
(Dr.) Account No. 512 (Cr.)
Bal. before 200 2010
closing
Dec. 31 To close to
Income Decreased
Summary 200 by $200

Bal. after —0—
closing
Rent Expense
(Dr.) Account No. 515 (Cr.)
Bal. before 400 2010
closing

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