Question

Hill Company had the following adjusted trial balance: Account Titles Debit Credit Cash Accounts Receivable $21,780 17,190 7,710 Supplies 39,800 Equipment Accumulated Depreciation Accounts Payable $9,900 Deferred Rent Revenue Capital Stock 3,700 2,260 19,720 21,400 Retained Earnings Dividends 13,300 Commission Revenue 59,300 Rent Revenue 6,100 Depreciation Expense Utilities Expense 7,800 9,300 5,500 Supplies Expense Total $122,380 $122,380

Answer 1

Adjusting entries are the entries made for adjusting the revenue and expenses for the period in which they are incurred. It is done at the end of the accounting period after preparing the unadjusted trail balance.

Sr.No Credit Debit $59,300 $6,100 $65,400 $22,600 Account Title Commission Revenue Rent Revenue Income Summary (To close the revenue account) Income Summary Depreciation Expense Utilities Expense Supplies Expense (To close the expesne account) Income Summary Retained Earnings (To transfer the profit) Retained Earnings Dividends (To cose the dividend accoutn) $7,800 $9,300 $5,500 $42,800 $42,800 $13,300 $13,300 1 Amount transferred to retained earnings is $42800 2 Balance in Retained Earnings $50,900 Hill Company Statement of Retained Earnings Beginning Balance $21,400 Add: Profit for the year $42,800 Less: Dividend -$13,300 Ending Balance $50,900 3. The balance in the rent revenue account is $0 (after the closing entries are passed)