On the basis of the following data taken from the Adjusted Trial Balance columns
ID: 2488575 • Letter: O
Question
On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Collines Manufacturing Center, a. Journalize the four closing entries. and b. What is the balance in Retained Earnings after the closing process. Cash $ 45,000 Accounts Receivable 45,200 Supplies 5,000 Equipment 169,900 Accumulated Depreciation $ 32,000 Accounts Payable 12,500 Capital Stock 71,600 Dividends 47,000 Fees Earned 665000 Salary Expense 350,500 Rent Expense 68,000 Depreciation Expense 35,000 Supplies Expense 11,500 Miscellaneous Expense 4,000 $781,100 $781,100
Explanation / Answer
Closing entries
Date
Account
Debit
Credit
Year end
Fees earned
665,000
To income summary
665,000
Income summary
469,000
To Salary expense
350,500
To rent expense
68,000
To Depreciation expense
35,000
To Supplies expense
11,500
To miscellaneous expense
4,000
Income summary
196,000
To Retained earnings
196,000
Retained earnings
47,000
To Dividend
47,000
Opening retained earnings
0
Add: net income
196,000
Less: Dividend
-47,000
Closing balance in retained earnings
149,000
Date
Account
Debit
Credit
Year end
Fees earned
665,000
To income summary
665,000
Income summary
469,000
To Salary expense
350,500
To rent expense
68,000
To Depreciation expense
35,000
To Supplies expense
11,500
To miscellaneous expense
4,000
Income summary
196,000
To Retained earnings
196,000
Retained earnings
47,000
To Dividend
47,000
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