Question

Exercise 3-17A Record closing entries (LO3-6) Seminoles Corporation's fiscal year-end is December 31, 2021. The following is a partial adjusted trial balance as of December 31. Debit Credit $25,000 $ 2,500 45,000 5,500 Accounts Retained Earnings Dividends Service Revenue Interest Revenue Salaries Expense Rent Expense Advertising Expense Depreciation Expense Interest Expense 14,500 5,500 2,500 10,500 4,500 Required: 1. Prepare the necessary closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 Record the entry to close the revenue accounts. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general journal 2. Calculate the ending balance of Retained Earnings. Retained earnings

Answer 1

1.

Journal

Date	Account Title and Explanation	Debit	Credit
Dec 31, 2021	Service revenue	45,000
	Interest revenue	5,500
	Income summary		50,500
	(To close revenue account)
Dec 31, 2021	Income summary	37,500
	Salaries expense		14,500
	Rent expense		5,500
	Advertising expense		2,500
	Depreciation expense		10,500
	Interest expense		4,500
	(To close expense account)
Dec 31, 2021	Income summary	13,000
	Retained earning		13,000
	(To close net income)

2.

Retained earnings, ending = Retained earning, beginning + Net income - Dividend

= 25,000 + 13,000 - 2,500

= $35,500

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