On December 31, 2016, Ditka Inc. had Retained Earnings of $276,800 before its cl

Question

On December 31, 2016, Ditka Inc. had Retained Earnings of $276,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $177,100 and interest revenue of $85,800 The company used supplies in the amount of $92,400, advertising expenses were $17,300, alaries and wages totaled $19,650, and income tax expense was calculated as $15,500. During the year, the company declared and paid dividends of $6,900 Required: a. Prepare the closing entries dated December 31, 2016. (If no entry is required for a transaction/event, select Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the entry for closing revenue and expense account. Note: Enter debits before credits Transaction General Journal Debit Credit

Explanation / Answer

Closing entries Accounts title and explanations Debit $ Credit $ Service revenue Account Dr. 177100 Interest revenue Account Dr. 85800      Income Summary 262900 Income Summary Account Dr. 144850.00      Supplies expense Accountt 92400      Advertisement expense Account 17300      Salaries and wages expense Account 19650      Income tax expense Account 15500 Income Summary Account Dr. 118050      Retained earning Account 118050 Retained earnings Account Dr. 6900      Dividend account 6900 Retained earnings Dividend 6,900 276,800 Balance 118,050 Income Summary 387,950 Balance

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