Question

The income statement for the Skysong, Inc. for the month ended July 31 shows Service Revenue $16,010, Salaries and Wages Expense $8,410, Maintenance and Repairs Expense $2,510, and Income Tax Expense 51,010. The statement of retained earnings shows an opening balance for Retained Earnings of $20,010 and Dividends $1,350. Prepare closing journal entries. (If no entry is required, select "No Entry" for the account titles 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 close expense accounts) July 31 (To cose net income/loss) to retained earnings) July 31 (To close dividends to retained earnings) SHOW LIST OF ACCOUNTS LINK TO TEXT What is the ending balance in Retained Earnings?

Answer 1

1	Date	Accounts and Explanation	Debit	Credit
	July 31	Service Revenue	$16,010
		Income Summary		$16,010
		(To close revenue account)
	July 31	Income Summary	$11,930
		Salaries and Wages Expense		$8,410
		Maintenance and Repairs Expense		$2,510
		Income Tax Expense		$1,010
		(To close expenses account)
	July 31	Income Summary	$4,080
		Retained Earnings		$4,080
	July 31	Retained Earnings	$1,350
		Dividends		$1,350
2	Ending Balance in Retained Earnings		$22,740
		($20,010 + $4,080 - $1,350)