On December 31, 2016, Ditka Inc. had Retained Earnings of $276,800 before its cl
ID: 2417841 • Letter: O
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, salaries 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 "No Journal Entry Required" in the first account field.) 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, salaries 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 "No Journal Entry Required" in the first account field.) 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, salaries 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 "No Journal Entry Required" in the first account field.)
Prepare T-account for the Retained Earnings account.
b.Prepare T-account for the Retained Earnings account.
Explanation / Answer
Closing entries
b)Retained earnings statment
Description Debit Credit Service revenue 177,100 interest revenue 85,800 To income summary $262,900 income summary $144,850 To Supplies expense $92,400 Advertising expense 17,300 Salaries and wages 19,650 income tax expense 15,500 income summary $118,050 To Retianed earning s $118,050 Retained earning s $6,900 To Dividend $6,900Related Questions
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