Question

The ledger of Flounder Company contains the following balances: Retained Earnings $30,500; Dividends $2,000; Service Revenue $48,000; Salaries and Wages Expense $26,000; and Supplies Expense $7,500. The closing entries are as follows: (1) Close revenue accounts. (2) Close expense accounts. (3) Close net income/(loss). (4) Close dividends. Enter the balances in the T-accounts, post the closing entries in the order presented in the problem and use the numbers as a reference.

Your answer is partially correct. Try again. The ledger of Flounder Company contains the following balances: Retained Earnings $30,500; Dividends $2,000; Service Revenue $48,000; Salaries and Wages Expense $26,000; and Supplies Expense $7,500. The closing entries are as follows: (1) (2) (3) (4) Close revenue accounts. Close expense accounts. Close net income/(loss). Close dividends. Enter the balances in the T-accounts, post the closing entries in the order presented in the problem and use the numbers as a reference. Salaries and Wages Expense T Bal. 26000||| (2) 7 1 26000 Supplies Expense 7500 Toal771750012) DL 7) 4800'eai. Service Revenue 48000 Dividends 2000 (4) V Bal. T 2000 Income Summary doo O O O O 48000 T(2) DL260001 (1) 7 1 (2) 7500 ||Bal. 7500 14500 Retained Earnings 2000 14500 Bal. 30500 Total 43000 Click if you would like to Show Work for this question: Open Show Work

Answer 1

1) Journal Entries :-

S. No.	Particulars	Debit($)	Credit($)
1)	Service Revenue A/c	48000
	Income Summary A/c		48000
	(Revenue A/c Close)
2)	Income Summary A/c	33500
	Salaries and Wages Expenses A/c		26000
	Supplies Expenses A/c		7500
	(Close Expenses A/c)
3)	Income Summary A/c ($48000 - $33500)	14500
	Retained Earning A/c		14500
	(Close Net Profit A/c and transfer to Retained Earning A/c)
4)	Retained Earning A/c	2000
	Dividends A/c		2000
	(Close Dividend A/c and Transfer to Retained Earning A/c)

2) T - Accounts :-

Salaries And Wages Expenses :-

Particulars	Amount($)	Particulars	Amount($)
Balance	26000	Income Summary A/c	26000
Total	26000	Total	26000

Supplies Expenses :-

Particulars	Amount($)	Particulars	Amount($)
Balance	7500	Income Summary A/c	7500
Total	7500	Total	7500

Service Revenue :-

Particulars	Amount($)	Particulars	Amount($)
Income Summary A/c	48000	Balance	48000
Total	48000	Total	48000

Dividends A/c :-

Particulars	Amount($)	Particulars	Amount($)
Balance	2000	Retained Earning A/c	2000
Total	2000	Total	2000

Income Summary A/c :-

Particulars	Amount($)	Particulars	Amount($)
Salaries and Wages	26000	Service Revenue A/c	48000
Supplies	7500
Retained Earning	14500
Total	48000	Total	48000

Retained Earing A/c:-

Particulars	Amount($)	Particulars	Amount($)
Dividend	2000	Beginning Balance	30500
Ending Balance	43000	Income Summary A/c	14500
Total	45000	Total	45000
		Beginning Balance	43000