From the Following Items in the Income Statement Columns of the Worksheet

question 78

Essay

From the following items in the income statement columns of the worksheet of Monaghan Company at December 31,prepare the closing entries without explanation,assuming that a $500 withdrawal was made during the period.
$\begin{array}{c}\begin{array}{lll}\\\underline{\text {Account}}\\\text {Service Revenue}\\\text {Wages Expense}\\\text {Rent Expense}\\\text {Supplies Expense}\\\text {Insurance Expense}\\\\\text {Net Loss}\\\\\end{array}\begin{array}{lll}\\\underline{\text {Debit}}\\\\500 \\250 \\100 \\\underline{50}\\950 \\----\\\underline{\$ 950}\end{array}\begin{array}{lll}\underline{\text {Income Statemen}}\\\underline{\text {Credit}}\\900\\\\\\\\-----\\900 \\\underline{50}\\\underline{\$ 950} \end{array}\end{array}$

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Definitions:

Circular-flow Diagram

A model that illustrates how goods, services, and money move through an economy, depicting the interactions between households and businesses.

Participants

Individuals or entities that take part in a process or activity.

Factors Of Production

The resources used in the production of goods and services, which include land, labor, capital, and entrepreneurship.

Inputs

The resources such as labor, materials, and capital that are used in the production process to produce goods and services.