20. Use the adjusted trial balance below and prepareclosing entries as of Decemb
ID: 2589347 • Letter: 2
Question
20. Use the adjusted trial balance below and prepareclosing entries as of December 31, 2016:
DR CR
Cash……………………………… $125,000
Accountsreceivable…………. …… 75,000
Allowance for doubtfulaccts………………………………….5,000
Equipment…………………………….…750,000
Accumulateddepreciation………………………………….150,000
Accounts payable……………………………………………..50,000
Notes payable………………………………………………..250,000
Common stock……………………………………………….300,000
Retainedearnings……………………………………………100,000
Dividends………………………………….10,000
Service revenue……………………………………………….500,000
Salaryexpense………………………….300,000
Rentexpense……………………………..75,000
Supplies expense…………………………20,000
Total $1,355,000 $1,355,000
Closing Entries:
Explanation / Answer
Closing entries
Credit
Date Accounts & Explanation DebitCredit
a) Service revenue 500000 Income summary a/c 500000 (To record close of revenue account) b) Income summary a/c 395000 Salaryexpense 300000 Rent expenses 75000 Supplies expenses 20000 (To record close of expenses a/c) c) Income summary a/c 105000 Retained earnings a/c 105000 (To record close of income summary a/c) d) Retained earnings a/c 10000 Dividends a/c 10000 (To record dividend account)Related Questions
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