Question

I don't know how to find income summary and ending retained earning

The adjusted trial balance for Montague Contracting as of December 31, 2018, follows

The adjusted trial balance for Montague Contracting as of December 31, 2018, follo No. Credit $ Debit 6,000 22,000 9,500 8,200 45,000 $ 22,500 159,000 53,000 73,890 MONTAGUE CONTRACTING Adjusted Trial Balance December 31, 2018 Account Title 101 Cash 104 Short-term investments 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 173 Building 174 Accumulated depreciation-Building 183 Land 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 233 Unearned professional fees 251 Long-term notes payable 307 Common stock 318 Retained earnings 319 Dividends 401 Professional fees earned 406 Rent earned 407 Dividends earned 409 Interest earned 606 Depreciation expense-Building 612 Depreciation expense-Equipment 623 Wages expense 633 Interest expense 637 Insurance expense 640 Rent expense 652 Supplies expense 682 Postage expense 683 Property taxes expense 684 Repairs expense 688 Telephone expense 690 Utilities expense Totals 15,500 2,400 3,800 2,700 1,300 7,200 70,500 6,000 125,400 10,200 104,000 16,500 2,100 2,100 11,660 6,750 31,000 5,000 9,100 10,600 6,400 2,800 5,000 7,900 1,600 3,400 $435,000 $435,000

The December 31, 2017, credit balance of the Retained Earnings account was $125,400. Montague Contracting is required to make a $8,000 payment on its long-term notes payable during 2019.

Required:
1. Prepare the necessary closing entries at December 31, 2018.

Answer 1

No General Journal Date Dec. 31 Income summary Credit Debit Account name $101,210 2 Deprn. Expnese- Building Deprn. Expnese- Equipment Wage expense Interest expnese Insurance expense $11,660 $6,750 $31,000 $5,000 $9,100 Rent expense supplies expense postage expense $10,600 $6,400 $2,800 $5,000 property taxes expense repairs expense Telephone expense Utilities expense S7,900 $1,600 $3,400 Dec. 31 Income summary ($124,700 - S101,210) Retained earnings 3 $23,490 $23,490 Dec. 31 Retained Earnings $10,200 4 Dividends $10,200