On December 31, 2016, Ditka Inc. had Retained Earnings of $279,800 before its cl
ID: 2484971 • Letter: O
Question
On December 31, 2016, Ditka Inc. had Retained Earnings of $279,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $180,100 and interest revenue of $87,300. The company used supplies in the amount of $93,900, advertising expenses were $17,600, salaries and wages totaled $20,100, and income tax expense was calculated as $16,100. During the year, the company declared and paid dividends of $7,200.
On December 31, 2016, Ditka Inc. had Retained Earnings of $279,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $180,100 and interest revenue of $87,300. The company used supplies in the amount of $93,900, advertising expenses were $17,600, salaries and wages totaled $20,100, and income tax expense was calculated as $16,100. During the year, the company declared and paid dividends of $7,200.
Explanation / Answer
Date Account title and explanation Debit($) Credit($) 31-12-2016 Service revenue 180100 Interest revenue 87300 Income summary 267400 To record the incomes earned 31-12-2016 Income summary 147700 Supplies 93900 Advertising expense 17600 Salaries and wages 20100 Income tax expense 16100 To record the expenses incurred 31-12-2016 Income Summary 119700 Retained earnings 119700 To record the closing entry for retained earnings 31-12-2016 Retained earnings 7200 Dividend 7200 To record the dividend declared
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