The ledger of Rios Company contains the following balances: Owner’s Capital $30,000; Owner’s Drawings $2,000; Service Revenue $50,000; Salaries and Wages Expense $27,000; and Supplies Expense $7,000.
The closing entries are as follows:
|(1)||Close revenue accounts.|
|(2)||Close expense accounts.|
|(3)||Close net income/(loss).|
Post the closing entries in the order presented in the problem and use the numbers as a reference.
Salaries and Wages Expense