Question

Saved Chapter 5 Homework Check my work mode: This shows what is correct or incorrect for the work you have completed so far, it Gerdes Psychological Services, Inc, closes its temporary accounts once each year on December 31. The compa following income statement as part of its annual report. 2,500 GERDES PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Revenues Counseling revenue Expenses: Advertising expense Salaries expense 97,000 Office supplies expense Utilities expense Malpractice insurance expense Office rent expense 21,000 Continuing education expense 2.600 Depreciation expense: fixtures 3,500 Miscellaneous expense 7,000 Income taxes expense Net income 500 The firm's statement of retained earnings indicates that a $8,000 cash dividend was declared and paid during the a. Prepare the necessary closing entries on December 31, current year. b. If the firm's Retained earnings account had a $92,000 balance on January 1, current year, at what amount shoul be reported in the firm's balance sheet dated December 31, current year? > Answer is not complete. Complete this question by entering your answers in the tabs below. Prev 1 of 4 !!! Next >

Answer 1

a. Preparation of necessary closing entries on Dec 31, current year . b. Retained earnings at Dec 31, current year.

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or prepare the necessary closing entries on Dec 31, current year particulars Debit Reasurement @ credit x $ 4000 counseling Revenue A To Income Summary (Being to close counseling Dr. All revenue $ 400000 earned) * (о Income Summary All Dr $ 171050 To Advertising expense ale To salaries expense Ale To office supplies exponse Ale okkkes expense To Malpractice Enforance Expense To office Rent expense To continuing Education expense To Depreciation expense: Fixtures To Miscellaneous expense To Encome taxes expense (Being to close all expense accounts). &2500 $ 99000 4 2400 $ 850 7000 21000 $ 2660 & 3500 $ 7000 $ 27500 $228950 Income Summary ६२२8150 All DY To Detained earnings Alc. (Being to traster het income earred in corrent year [1400000 - 4 171050] to retained earnings). $ 8000 Retained earnings All Dr To Dividends (Being to close dividends declared in corrent year to retained earnings) & 8ooo

Dr Retained : earnings: Amount Requirement particulars Retained earnings, Net income Jan & corrent year $92000 9228950 (t) As Dividends declared in corrent year Retained earnings, Dec 31, current year $320950 & (8000) $312950