Closing Entries The adjusted trial balance shown below is for Batton, Inc., at December 31: BATTON,...

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Closing Entries The adjusted trial balance shown below is for Batton, Inc., at December 31: BATTON, INC. Adjusted Trial Balan

Return to course Business Course Required a. Prepare closing entries in general journal form using the Income Summary account

b. Balance in Retained Earnings at December 31 $ 0 BATTON, INC. Post-Closing Trial Balance December 31 Debit Credit Cash $ 0$

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Answer 1

Answer #1

a]	Service fees earned	$ 1,01,200
	Miscellaneous income	$ 4,200
	Income summary		$ 1,05,400
	[To close revenue accounts]

	Income summary	$ 73,800
	Salaries expense		$ 42,800
	Rent expense		$ 12,900
	Insurance expense		$ 1,800
	Depreciation expense		$ 8,000
	Income tax expense		$ 8,300
	[To close expense accounts]

	Income summary	$ 31,600
	Retained earnings		$ 31,600
	[To close income summary]

	Retained earnings	$ 7,000
	Cash dividends		$ 7,000

b]	Ending balance in retained earnings = 14100+31600-7000 =	$ 38,700
c]	Post Closing Trial Balance
		Debit	Credit
	Cash	$ 4,000
	Accounts receivable	$ 8,000
	Prepaid insurance	$ 3,600
	Equipment	$ 75,000
	Accum. Depreciation		$ 12,500
	Accounts payable		$ 600
	Income tax payable		$ 8,800
	Common stock		$ 30,000
	Retained earnings		$ 38,700
	Totals	$ 90,600	$ 90,600

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Answer 2

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