On December 31, 2016, Ditka Inc. had Retained Earnings of $270,800 before its cl
ID: 2497989 • Letter: O
Question
On December 31, 2016, Ditka Inc. had Retained Earnings of $270,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $171,100 and interest revenue of $82,800. The company used supplies in the amount of $89,400, advertising expenses were $16,700, salaries and wages totaled $18,750, and income tax expense was calculated as $14,300. During the year, the company declared and paid dividends of $6,300. 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.)
1. Record the entry for closing revenue and expense account.
2. Record the entry for closing dividend account.
Explanation / Answer
b)
Date Title Debit credit dec 31 ,2016 service revenue 171100 Interest revenue 82800 Income statement 253900 [being Revenue closed in income statement] 31 dec Income statement 139150 supplies expense 89400 Advetising expense 16700 salaries and wages 18750 Income tax expense 14300 [being expense closed in income summary]Related Questions
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