Question

Please answer question D, the last 3 unanswered pictures. thank you so much

Problem 4-02A a-e (Part Level Submission) The adjusted trial balance columns of the worksheet for Ayayai Company are as follows. . 130 157 Ayayai Company Worksheet For the Year Ended December 31, 2019 Adjusted Trial Balance Account No. Account Titles Dr. Cr. 101 Cash 5,000 112 Accounts Receivable 10,500 126 Supplies 1,200 Prepaid Insurance 1,800 Equipment 26,500 158 Accumulated Depreciation-Equipment 5,000 200 Notes Payable 12,000 201 Accounts Payable 5,800 212 Salaries and Wages Payable 2,100 Interest Payable 500 311 Common Stock 9,500 320 Retained Earnings 3,000 Dividends 6,300 400 Service Revenue 61,100 610 Advertising Expense 8,000 631 Supplies Expense 3,700 Depreciation Expense 5,000 Insurance Expense 3,000 726 Salaries and Wages Expense 27,500 Interest Expense 500 Totals 99,000 99,000 230 332 711 722

Answer 1

Solution:

d)

Retained Earnings: No. 301

Date	Explanation	Ref	Debit	Credit	Balance
Jan 31	Balance				3000
Dec 31	Closing entry	J14		13,400	16,400
Dec 31	Closing entry	J14	6,300		10,100

Dividends No.306

Date	Explanation	Ref	Debit	Credit	Balance
Dec 31	Balance		6,300		6,300
Dec 31	Closing Entry	J14		6,300	0

Income summary No.350

Date	Explanation	Ref	Debit	Credit	Balance
Dec 31	Closing entry	J14		61,100	61,100
Dec 31	Closing Entry	J14	47,700		13,400
Dec 31	Closing Entry	J14	13,400		0

Service Revenue No.400

Date	Explanation	Ref	Debit	Credit	Balance
Dec 31	Balance			61,100	61,100
Dec 31	Closing Entry	J14	61,100		0

Advertising Expense No.610

Date	Explanation	Ref	Debit	Credit	Balance
Dec 31	Balance		8,000		8,000
Dec 31	Closing Entry	J14		8,000	0

Supplies Expense No. 631

Date	Explanation	Ref	Debit	Credit	Balance
Dec 31	Balance		3,700		3,700
Dec 31	Closing Entry	J14		3,700	0

Depreciation Expense No.711

Date	Explanation	Ref	Debit	Credit	Balance
Dec 31	Balance		5,000		5,000
Dec 31	Closing Entry	J14		5,000	0

Insurance Expense No.722

Date	Explanation	Ref	Debit	Credit	Balance
Dec 31	Balance		3,000		3,000
Dec 31	Closing Entry	J14		3,000	0

Salaries and wages Expense No.726

Date	Explanation	Ref	Debit	Credit	Balance
Dec 31	Balance		27,500		27,500
Dec 31	Closing Entry	J14		27,500	0

Interest Expense No.905

Date	Explanation	Ref	Debit	Credit	Balance
Dec 31	Balance		500		500
Dec 31	Closing Entry	J14		500	0

Explanation:

Retained earnings has a opening credit balance of $3000. Net income in this year of $13,400 will increase this earnings

further to 16,400 credit balance.But as dividends of $6,300 are distributed from the retained earnings , retained earnings balance decreases by $ 6,300 to $10,100

Dividends declared are appearing in opening trial balance with debit balance of $ 6300 . When dividends are actually paid from the retained earnings dividend account is closed by crediting dividends and debiting retained earnings.