Question

Martinez Company had the following adjusted trial balance. Martinez Company Adjusted Trial Balance For the Month Ended June 30, 2022 Adjusted Trial Balance Account Titles Debit Credit Cash $3,880 Accounts Receivable 3,910 400 $1,950 140 2,950 2,000 Supplies Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Miscellaneous Expense Supplies Expense Salaries and Wages Payable 780 5,000 1.350 270 1.900 450 $12.490 $12,490 (a) Prepare closing entries at June 30, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Ans.	First of all all revenues and expenses are closed to income summary account.
	Then the net income is closed by debiting retained earnings to income summary
	account and finally dividends are closed to retaiend earnings account.

Credit Date Account Titles and Explanations 30-June Service revenue Income summary (To close revenue accounts) Debit $5,000 $5,000 $3,520 30-June Income summary Salaries and wages expense Miscellaneous expense Supplies expense (To close expenses accounts) $1,350 $270 $1,900 $1,480 30-June Income summary Retained earnings (To close net income) $1,480 $780 30-June Retained earnings Dividends (To close the dividends account) $780 *Calculations for Net income (Third journal entry): Amount MARTINEZ COMPANY Income Statement For the Month Ended June 30 2022 Particulars Amount Revenues: Service revenue $5,000 Total revenue (a) Less: Expenses: Salaries and wages expense $1,350 Miscellaneous expense $270 Supplies expense $1,900 Total expenses (b) Net Income (a - b) $5,000 $3,520 $1,480