Question

ercise 3-Part 2: Closing Journal Entries Listed below in random order are selected accounts from the adjusted trial balance of the Cherokee Company at June 30 (the end of the fiscal year) 30 500 Dividends Payable Common Stock Retained Eanings (6/1) Sales Rent Expense Rent Receivable Rent Payable Rent Revenue Prepaid Rent Unearned (deferred) Rent Revenue Cost of Goods Sold Advertising Expense Wages Expense Dividends Cash Accounts Receivable Accounts Payable 20 50 12 550 30 40 300 200 100 the closing journal entries needed on June 30, using the Income Summary account. Debit Credit Date Account Titles and Explanations June 30 June 30 June 30 What is the Retained Earnings balance on the June 30 balance sheet?

Answer 1

Closing Journal entries
Date	Account Titles and Explanation	Debit	Credit
June.30	Sales	$900.00
	Rent Revenue	$50.00
	Income Summary		$950.00
	(to transfer income ledger balances to Income summary)
June.30	Income Summary	$960.00
	Cost of goods sold		$550.00
	Rent Expense		$80.00
	Advertising Expense		$30.00
	Wages Expense		$300.00
	(to transfer expense ledger balances to Income summary)
June.30	Retained Earnings	$10.00
	Income Summary		$10.00
	(to transfer loss to retained earnings)
June.30	Retained Earnings	$40.00
	Dividends		$40.00
	(to delare dividend)
Retained Earnings balance as oin June 30
Balance as on June 1		$200.00
Less : Loss		$10.00
Less : Dividends		$40.00
Retained Earnings balance as oin June 30		$150.00