On December 31, 2016, Ditka Inc. had Retained Earnings of $275,800 before its cl

Question

On December 31, 2016, Ditka Inc. had Retained Earnings of $275,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $176,100 and interest revenue of $85,300. The company used supplies in the amount of $91,900, advertising expenses were $17,200, salaries and wages totaled $19,500, and income tax expense was calculated as $15,300. During the year, the company declared and paid dividends of $6,800.

Record the entry for closing revenue and expense account.

Record the entry for closing revenue and expense account.Record the entry for closing dividend account.

Prepare T-account for the Retained Earnings account.

Prepare T-account for the Retained Earnings account.

Explanation / Answer

Ans;

Answer:a

Service Revenue A/C Dr. $176100

Interest Revenue A/C Dr. $85300

      To Income Summary A/C                $261400

Income Summary A/C Dr. $143900

    To Supplies A/C                         $91900

    To Advertising exp. A/C              $17200

    To Salaries & Wages A/C           $19500

    To Income tax expense A/C        $15300

Income Summary A/C Dr. $117500

    To Retained Earnings A/C                $117500

Retained earnings A/C Dr. $6800

    To Dividend A/C                             $6800

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