Question

* The ledger of Blue Spruce Company contains the following balances after adjustments: Retained Earnings $32,000: Dividends $1,000; Service Revenue $48,000; Salaries and Wages Expense $27,000; and Supplies Expense $8,000. Prepare the closing entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

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Blue Spruce
Closing Entries
Account	Debit $	Credit $
Service Revenue	48,000.00
Income Summary		48,000.00
Income Summary	35,000.00
Salaries & Wages Expense		27,000.00
Supplies Expense		8,000.00
Income Summary	13,000.00
Retained Earnings		13,000.00
Retained Earnings	1,000.00
Dividends		1,000.00
Riverbed
Closing Entries
Account	Debit $	Credit $
Service Revenue	51,500.00
Income Summary		51,500.00
Income Summary	35,500.00
Salaries & Wages Expense		28,500.00
Supplies Expense		7,000.00
Income Summary	16,000.00
Retained Earnings		16,000.00
Retained Earnings	2,500.00
Dividends		2,500.00

T accounts
Service Revenue
Account	Debit	Credit	Balance
Balance		51,500.00	51,500.00
Income Summary	51,500.00		-
Salaries & Wages Expense
Account	Debit	Credit	Balance
Balance	28,500.00		28,500.00
Income Summary		28,500.00	-
Supplies Expense
Account	Debit	Credit	Balance
Balance	7,000.00		7,000.00
Income Summary		7,000.00	-
Income Summary
Account	Debit	Credit	Balance
Service Revenue		51,500.00	51,500.00
Salaries & Wages Expense	28,500.00		23,000.00
Dividends	2,500.00		20,500.00
Retained Earnings	16,000.00		4,500.00
Income Summary
Account	Debit	Credit	Balance
Balance		29,000.00	29,000.00
Income Summary		16,000.00	45,000.00
Supplies Expense	2,500.00		42,500.00
Closing Balance			42,500.00