Question

Seminoles Corporation's fiscal year-end is December 31, 2021. The following is a partial adjusted trial balance as of December 31. Debit Credit $20,000 $ 2,000 Accounts Retained Earnings Dividends Service Revenue Interest Revenue Salaries Expense Rent Expense Advertising Expense Depreciation Expense Interest Expense 40,000 5,000 14,000 5,000 2,000 10,000 4,000 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.) No General Journal Debit Credit Date December 31, 202 ဇ ဇ December 31, 202 ဇ xxxxx 3 December 31, 202 ဇဇ 2. Calculate the ending balance of Retained Earnings.

Answer 1

Answer 1 :

No	Date	General Journal	Debit	Credit
1	December 31, 2021	Service Revenue	40,000
		Interest Revenue	5,000
		Retained Earnings		45,000
		(To transfer revenues to retained earnings)
2	December 31, 2021	Retained Earnings	35,000
		Salaries Expense		14,000
		Rent Expense		5,000
		Adverting Expense		2,000
		Depreciation Expense		10,000
		Interest Expense		4,000
		(To transfer expenses to retained earnings)
3	December 31, 2021	Retained Earnings	2,000
		Dividends		2,000
		(To transfer dividends to retained earnings)

Answer 2 : Retained Earnings = $28,000.

Explanation :

Retained Earnings = Opening retained earnings balance + Revenue transfer - Expense transfer - Dividends transfer.

= $20,000 + $45,000 - $35,000 - $2,000 = $28,000.