Question

Journal Entry Accounts Debit Credit Data Table - X Date (1) Jan 31 i Requirements 12,500 17,100 1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Valley Haven's closing entries at January 31, 2018. 2. A T-account for Retained Earnings has been set up for you. Post to that account. Then calculate Valley Haven's net income for the year ended January 31, 2018. What is the ending balance of Retained Earnings? 3. Did Retained Earnings increase or decrease during the year? What caused the increase or the decrease? Next, close the expense accounts. Accounts payable ..............$ Accounts receivable .... Accumulated depreciation, equipment Advertising expense .............. 1,000 15,500 14,100 5,200 Journal Entry 7,300 11,100 Accounts Debit Credit Date (2) Jan Cash.. Interest expense ............5 Note payable, long term ...... Other assets, long-term ...... Prepaid expenses ........... Retained earnings, January 31, 2017 Salary expense... Salary payable. Service revenue .......... Supplies... Supplies expense ......... Unearned service revenue ... 8,100 Print Done Common stock. Current portion of long-term ........ note payable Depreciation expense-equipment... Dividends declared ............... 1,400 2,000 11,200 43,200 13,100 26,200 2,600 92,500 3,000 4,400 2.800 Equipment ...................... Now close the dividends account. Journal Entry Print Done Date Accounts Debit Credit (3) Jan 31 Requirement 2. A T-account for Retained Earnings has been set up for you. Post to that account. Then calculate Valley Haven's net income for the year ended January 31, 2018. What is the ending balance of Retained Earnings? Post the beginning balance and closing entries to Retained Earnings in the T-account by selecting the respective posting references and then entering the correct amounts. Determine the ending balance. Retained Earnings The net income for 2018 was $ D . Requirement 3. Did Retained Earnings increase or decrease during the year? What caused the increase or decrease? Retained Earings V during 2018 because Choose from any list or enter any number in the input fields and then continue to the next question

Answer 1

1.

Credit | Date Account title (1) Jan. 31 Service revenue Retained earnings Debit 92,500 92,500 Credit Debit 44,700 Date Account title (2) Jan. 31 Retained earnings Advertising expense Depreciation expense-Equipment Interest expense Salary expense Supplies expense 11,100 2,000 1,000 26,200 4,400 Credit Date Account Account title |(3) Jan. 31 Retained earnings Dividends Debit 11,200 11,200

2.

(2) Jan. 31 (3) Jan. 31 Retained earnings 44,700 Jan. 1 Beg. Bal. 11,200 (1) Jan. 31 Jan. 31 End. Bal. 13,100 92,500 49,700 The net income = 92,500 - 44,700 = 47,800 Retained earnings = 49,700

3.

Retained earnings increases during 2018 because net income is increased.