Question

The income statement for the Teal Mountain Inc. for the month ended July 31 shows Service Revenue $16,810, Salaries and Wages Expense $8,970, Maintenance and Repairs Expense $4,020, and Income Tax Expense $1,270. The statement of retained earnings shows an opening balance for Retained Earnings of $22.6H0 and Dividends $1,980. Prepare closing journal entries. (If no entry is required, select "No Entry" for the account tities and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation July 31 (To close revenue account) July 31 (To clase expense accounts) July 31 (To cose net incorna/loss) to reared earnings) July 31 (To dose didends to retained earnings) SHOW LIST OF ACCOUNTS LINK TO TEXT What is the ending balance in Retained Earnings? Ending balance in Retained Earnings

Answer 1

Date	General Journal	Debit	Credit
Jul-31	Service revenue	$ 16,810
	Income summary		$ 16,810
	(To close revenue account)
Jul-31	Income summary	$ 14,260
	Salaries and wages expense		$    8,970
	Maintenance and repair expense		$    4,020
	Income tax expense		$    1,270
	(To close expense account)
Jul-31	Income summary ($16810 - $14260)	$    2,550
	Retained earnings		$    2,550
	(To close net Income(loss) to retained earnings)
Jul-31	Retained earnings	$    1,980
	Dividends		$    1,980
	(To close dividend to retained earnings)
	Ending Balance in Retained Earnings	=	$ 23,250
	Workings:
	Ending Balance in Retained Earnings	=	$22680 + $2550 - $1980
		=	$ 23,250