Can I get help? E4-20 Selected year-end account balances from the adjusted trial

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Can I get help?

E4-20 Selected year-end account balances from the adjusted trial balance as of December 31, 2017, for Tippy Corporation is provided below. Debit Credit Accounts Receivable Dividends Depreciation Expense Equipment Salaries and Wages Expense Accounts Payable Accumulated Depreciation-Equipment Unearned Rent Revenue Service Revenue Rent Revenue Rent Expense Retained Earnings Supplies Expense 72,600 26,300 13,200 212,800 91,100 $ 53,000 114,800 22,900 183,800 6,200 3,600 61,800 1,400 Instructions (a) Prepare closing entries (b) Determine the post-closing balance in Retained Earnings

Explanation / Answer

a There will be four closing entries: Date Transactions Debit Credit Dec-31-17 Service revenue 183800 Rent revenue 6200      Income Summary 190000 Dec-31-17 Income Summary 109300       Salaries and wages expense 91100       Depreciation expense 13200       Rent expense 3600       Supplies expense 1400 Dec-31-17 Income Summary 80700 =190000-109300       Retained earnings 80700 Dec-31-17 Retained earnings 26300       Dividends 26300 b Post closing balance in retained earnings = Retained earnings pre closing balance+Net income-Dividends = 61800+80700-26300= $116200

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