Journalizing Entries I just need help with the journaling part.I don’t know how

Question

Journalizing Entries

I just need help with the journaling part.I don’t know how to set it up.

Closing entries with net income Instructions Chart of Accounts Journal Final Question Instructions After all revenue and expense accounts have been closed at the end of the fiscal vear mmary has a debit of $758,400 and a credit of $962,300. At the same date, Retained Earnings h Dividends has a balance of $28,000 Required A Journalize the entries required to complete the closing of the accounts on December 31. Refer to the Chart of Accounts for exact wording of account titles. B. Detemine the amount of Retained Earnings at the end of the period Journal A. Journalize the entries required to complete the closing of the accounts on December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Closing Entries Dec. 3 Income Summary Retained Earnings Retained Earnings 203,900.00 203,900.00 Dec. 31

Explanation / Answer

Answer

>revenue accounts, having credit balances are closed by debiting them and crediting Income Summary

>expenses account, having debit balances are closed by crediting them and debiting Income Summary.

>If credit in Income Summary is MORE than debit in Income Summary, it’s a result of Net Income. In this case, Income Summary is closed by debiting it, and retained earnings account is credited.

>If debit in Income Summary is LESS than credit in Income Summary, it’s a result of Net Loss. In this case, Income Summary is closed by crediting it, and debiting Retained earnings account.

>Dividend account is closed by debiting Retained earnings account.

>revenue and expense account have been closed and Credits in Income Summary is MORE than Debits, hence it’s a case of Net Income.

Date

Description

Debit

Credit

Assets

Liabilities

Equity

Dec-31

Income Summary [962300 - 758400]

$                                 203,900.00

      Retained Earnings

$               203,900.00

( Net Income balance of Income Summary Closed)

Dec-31

Retained earnings

$                                   28,000.00

     Dividends

$                  28,000.00

(Dividend account closed)

Date

Description

Debit

Credit

Assets

Liabilities

Equity

Dec-31

Income Summary [962300 - 758400]

$                                 203,900.00

      Retained Earnings

$               203,900.00

( Net Income balance of Income Summary Closed)

Dec-31

Retained earnings

$                                   28,000.00

     Dividends

$                  28,000.00

(Dividend account closed)

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