Question

- The statement of comprehensive income for Squad Carpentry Ine for the year anded December 31, 2019. is as follows: S2I8.200 Squared Carpentry, Inc. Statement of Comprehensive Income For the Year Ended December 31, 2019 Service revenge Less expenses Wages expense $100,750 Utilities expense 4,890 Advertising expense 18,640 Interest expense 17,340 Total expenses Net income Other comprehensive income Comprehensive income Dividends of 518,600 were paid on December 30, 2019. 141,620 $76,580 1.420 $78,000 Instructions Give the entry required to close the (a) revenues account (b) expenses account (c) dividends account at December 31, 2019. (9%) (3x3)

Answer 1

Answer to Question 1:

Date Credit Debit 218,200 Dec. 31, 2019 218,200 Dec. 31, 2019 141,620 General Journal Service Revenue Income Summary Income Summary Wages Expense Utilities Expense Advertising Expense Interest Expense Retained Earnings Dividends 100,750 4,890 18,640 17,340 Dec. 31, 2019 18,600 18,600

Answer to Question 2:

Bank Reconciliation Balance per bank statement Add: Deposits outstanding Less: Checks outstanding Adjusted bank balance 87450 5000 -9200 83250 Balance per books Add: Collection of note Less: Service charges Less: NSF checks Adjusted bank balance 81200 2300 -50 -200 83250

Debit Credit Date Dec. 31, 2019 50 50 Dec. 31, 2019 2,300 General Journal Miscellaneous Expense Cash Cash Notes Receivable Interest Revenue Accounts Receivable Cash 2,000 300 Dec. 31, 2019 200