Question

Below are accounts with account balances (excluding the balance in the Retained earnings account) for Anton Corporation as of December 31, 20XX. The Retained earning account balance at January 1, 20XX was $293,800. Chapter 4 Question 1: (1 point) Required: What is the amount of the total expenses? Omit $ signs. Chapter 4 Question 2: (1 point) Required: In the first closing entry, for what amount would Retained earnings be credited? Omit $ signs. Chapter 4 Question 3: (2 points) Required: After all closing entries are prepared, what would be the December 31, 20XX balance in Retained earnings? Omit $ signs. Cash $28,000 Accounts receivable 69,600 Supplies 4,600 Prepaid Insurance 2,500 Building 439,500 Accumulated depreciation – building 44,200 Accounts payable 11,700 Salaries payable 3,000 Unearned rent 2,000 Common stock 80,000 Dividends 12,000 Fees earned 718,000 Rent revenue 12,000 Salaries expense 522,100 Rent expense 48,000 Supplies expense 10,800 Depreciation expense - building 8,750 Utilities expense 7,150 Repair expense 3,000 Insurance expense 2,500 Miscellaneous expense 6,200

In the first closing entry, for what amount would Retained earnings be credited? Omit $ signs.

Answer 1

	Chapter 4 Question No 1:- total amount of total expenses 608,500
	Chapter 4 Question No 2:- retained earning would be credited by the current year profit of 121,500
	Chapter 4 Question No 3:- Closing balance of retained earning is 403,300
		Income Statement
		Particulars	Amount $
		Revenue
		Fees earned	718,000
		Rent revenue	12,000
		Total Revenue	730,000
		Expenses
		Salaries expenses	522,100
		Rent expenses	48,000
		Depreciation expenses	8,750
		Supplies expenses	10,800
		Utilities expenses	7,150
		Repair expenses	3,000
		Insurance expenses	2,500
		Misc. expenses	6,200
		Total Expenses	608,500
		Net Income for the current year	121,500
		Balance sheet
		Liabilities	$	Assets	$
		Common stock	80,000	Building	439,500
		Retained earning	403,300	Less:- Accumulated depreciation	(44,200)
				Building net of depreciation	395,300
		Accounts Payable	11,700	Accounts receivable	69,600
		Salaries payable	3,000	Cash	28,000
		Unearned rent	2,000	Supplies	4,600
				Prepaid insurance	2,500
		Total	500,000	Total	500,000
		Retained earning
		Particulars	Amount $
		Opening balance	293,800
		Add;- Profit for the year	121,500
		Less:- Dividend paid	(12,000)
		Closing retained earning	403,300