Exercid account balances from the adjusted trial balance as of December 31, 2017
ID: 2538214 • Letter: E
Question
Exercid account balances from the adjusted trial balance as of December 31, 2017, for Selected year-end account balances from the adjusted trial ba Pronghorn Corp is provided below. Debit Credit $76,960 Accounts Receivable Dividends Depreciation Expense Equipment Salaries and Wages Expense Accounts Payable Accumulated Depreciation-Equipment 27,880 13,990 225,570 96,570 $56,180 121,690 24,270 194,830 6,570 Unearned Rent Revenue Service Revenue Rent Revenue Rent Expense Retained Earnings Supplies Expense 3,820 65,510 1,480 Prepare Closing Entries Determine the post-closing balance in Retained Earnings.Explanation / Answer
Closing entries are journal entries passed at year end to close temporary accounts. all incomes and expenses will adjust with income summary account and balance in income summary account and dividends will adjust with retained earnings.
Closing entries
Post closing balance in retained earnings
Service revenue $ 194,830 Rent revenue $ 6,570 Income summary $ 201,400 (To close revenue accounts) Income summary $ 115,860 Rent expense $ 3,820 Supplies expense $ 1,480 Depreciation expense $ 13,990 Salaries and wages expenses $ 96,570 (To close expenses) Income summary ($201,400 - $115,860) $ 85,540 Retained earnings $ 85,540 (To transfer balance in income summary account) Retained earnings $ 27,880 Dividends $ 27,880 (To close dividend account)Related Questions
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