Question

The income statement for the Windsor, Inc. for the month ended July 31 shows Service Revenue $18,760, Salaries and Wages Expense $9,350, Maintenance and Repairs Expense $2,970, and Income Tax Expense $1,360. The statement of retained earnings shows an opening balance for Retained Earnings of $21,890 and Dividends $1,610.

Prepare closing journal entries. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 31 enter an account title to close revenue account enter a debit amount enter a credit amount enter an account title to close revenue account enter a debit amount enter a credit amount (To close revenue account) July 31 enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount (To close expense accounts) July 31 enter an account title to close net income/(loss) to retained earnings enter a debit amount enter a credit amount enter an account title to close net income/(loss) to retained earnings enter a debit amount enter a credit amount (To close net income/(loss) to retained earnings) July 31 enter an account title to close dividends to retained earnings enter a debit amount enter a credit amount enter an account title to close dividends to retained earnings enter a debit amount enter a credit amount (To close dividends to retained earnings)

Answer 1

Answers

--Closing entries

Date	Accounts title	Debit	Credit
31-Jul	Service revenue	$18,760
	Income Summary		$18,760
	(to close revenue)
31-Jul	Income Summary	$13,680
	Salaries & wages expense		$9,350
	Maintenance & repairs expense		$2,970
	Income tax expense		$1,360
	(to close expense)
31-Jul	Income Summary ($ 18760 - 13680)	$5,080
	Retained earnings		$5,080
	(to close net income)
31-Jul	Retained Earnings	$1,610
	Dividends		$1,610
	(to close dividend)