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The image shows a section on **Closing Entries** for Classic Landscaping Services, as of June 30, the end of the fiscal year. The accounts and their balances listed are:

- **Bashir Yousif, Capital**: $1,100,000
- **Bashir Yousif, Drawing**: $30,000
- **Fees Earned**: $975,000
- **Wages Expense**: $580,000
- **Rent Expense**: $120,000
- **Supplies Expense**: $31,600
- **Miscellaneous Expense**: $12,400

### Instructions:
Journalize the two entries required to close the accounts. Here’s how the entries would typically be journalized:

#### 1. Close revenue accounts to Income Summary:
- **Debit**: Fees Earned $975,000
- **Credit**: Income Summary $975,000

#### 2. Close expense accounts to Income Summary:
- **Debit**: Income Summary $744,000 
   (Sum of Wages Expense, Rent Expense, Supplies Expense, and Miscellaneous Expense)
- **Credit**: Wages Expense $580,000
- **Credit**: Rent Expense $120,000
- **Credit**: Supplies Expense $31,600
- **Credit**: Miscellaneous Expense $12,400

#### 3. Close Income Summary to Capital:
- **Debit**: Income Summary $231,000 
   (This represents the net income: $975,000 - $744,000)
- **Credit**: Bashir Yousif, Capital $231,000

#### 4. Close the Drawing account to Capital:
- **Debit**: Bashir Yousif, Capital $30,000
- **Credit**: Bashir Yousif, Drawing $30,000

Would you like further clarification on any of these steps?

### Relative Questions:
1. What is the purpose of closing entries in accounting?
2. How do you determine the amount to close into the capital account?
3. What is the significance of the income summary account?
4. How does closing the drawing account affect the owner’s capital?
5. What happens if closing entries are not made correctly?

#### Tip:
Always ensure that all temporary accounts are closed out at the end of the period to start the new period with zero balances, reflecting accurate financial data.

After the accounts have been adjusted at June 30, the end of the fiscal year, the following balances were taken from the ledger of Classic Landscaping Services. Journalize the two entries required to close the accounts.

Learn how to journalize the closing entries for Classic Landscaping Services, including closing the revenue and expense accounts to the income summary and the owner's capital account. This problem is suited for college-level accounting students.

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