Question

Requirement 2. Prepare the closing entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by closing revenues. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (1) Close expenses for the period. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (2) Choose from any list or enter any number in the input fields and then continue to the next question Save for Later

Answer 1

2.

Date	Accounts and Explanation	Debit	Credit
Dec. 31	Service revenue	31400
Clos. (1)	Income summary		31400
	(To close revenues)
Dec. 31	Income summary	40325
Clos. (2)	Rent expense		22500
	Salaries expense		8275
	Supplies expense		250
	Utilities expense		8000
	Depreciation expense-equipment		1300
	(To close expenses)
Dec. 31	Retained earnings	8925
Clos. (3)	Income summary ($40325 - $31400)		8925
	(To close income summary)
Dec. 31	Retained earnings	22000
Clos. (4)	Dividends		22000
	(To close dividends)

3.

Chicago Veterinary Hospital
Post-Closing Trial Balance
December 31, 2018
	Balance
Account Title	Debit	Credit
Cash	24500
Accounts receivable	11500
Office supplies	550
Prepaid rent	4500
Equipment	21000
Accumulated depreciation-equipment		1300
Accounts payable		4800
Utilities payable		290
Salaries payable		1275
Unearned revenue		11400
Common stock		34000
Retained earnings		8985
Totals	62050	62050

Retained earnings = $39910 - $8925 - $22000 = $8985