Question

Data Table Accounts payable Accounts receivable Accumulated depreciation, S 12,800 Interest expense S 1,100 16,200 13,500 5,300 16,100 Note payable, long term Other assets, long-term 7,300 Prepaid expenses equipment Advertising expense Cash Common stock Current portion of long-term 10,900 Retained earnings, 17,000 January 31, 2017 Salary expense Salary payable 13,400 26,600 3,500 94,000 3,000 4,300 3,700 3,300 note payable Depreciation expense-equipment Dividends declared Equipment 1,100 Service revenue 1,100 Supplies 14,000 42.400 Supplies expense Unearned service revenue Print Done

Answer 1

Date	Account Titles and Explanation	Debit	Credit
31 Jan, 2018	Service Revenue	94000
	Income Summary		94000
	(To Close Service revenue)
31 Jan, 2018	Income Summary	44000
	Advertising expense		10900
	Depreciation expense - Equipment		1100
	interest expense		1100
	Salary expense		26600
	Supplies Expense		4300
	(To close expenses)
31 Jan, 2018	Retained Earnings	14000
	Dividends		14000
	(To close dividend)
	Retained Earnings
	Expenses	44000	Opening balance	13400
	Dividends	14000	Service Revenue	94000
	Balance	49400
		107400		107400
	The net Income for 2018 was $50,000.
Retained earnings increased during 2018 because net income exceeded dividend.