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Ques5 incerplete answer Marked out of 16.00 P Flax question Credit Preparing Financial Statements and Closing Procedures Solomon Corporation's adjusted trial balance for the year ending December 31, 2018, is: Solomon Corporation Adjusted Trial Balance December 31, 2018 Debit Cash $4,000 Accounts Receivable Accoun 6,500 Equipment 78,000 Accumulated Depreciation $14,000 Notes Payable 10,000 Common Stock 43,con Retained Earnings 12.600 Service Fees Revenue 71.000 Rent Expense 18,000 Salaries Expense 37,100 Depreciation Expense 7,000 Totals $150,600 $150,600 (a) Prepare its income statement and statement of stockholders' equity for the current year, and its balance sheet for the current year-end. Cash dividends were $8,000 and there were no stock issuances or repurchases. (b) Prepare entries to close its temporary accounts in journal entry form. (c) Set up T-accounts for each of the ledger accounts, enter the balances above, and post the closing entries to them. After these entries are posted, what is the post-closing balance of the Retained Earnings account? Note: Do not use negative signs unless otherwise noted.

Answer 1

Credit Solomon Corporation Closing entries Date Account 31-Dec Service Fees Revenue Retained Earnings To close revenues Debit $ 71,000 $ 71,000 $ 62,100 31-Dec Retained Earnings Rent Expense Salaries Expense Depreciation Expense To close expenses $ 18,000 $ 37,100 $ 7,000

Credit Date Credit Solomon Corporation T Accounts Date Debit Date Retained Earnings Balance 1 $ 71,000 2 Debit Date Credit Date Service Fees Revenue $ 71,000 Balance $ 71,000 2 Debit Date Rent Expense $ 18,000 $ 12,600 Balance 1 $ 62,100 $ 18,000 Balance Balance $ Salaries Expense $ 37,100 $ 3,700 Balance $ Depreciation Expense Balance $ 7,000 $ 37,100 2 $ 7,000 Balance 2 Balance $ $ Balance $

71,000 Solomon Corporation Income Statement For the Year Ended December 31, 2018 Revenues Service Fees Revenue Expenses Rent Expense Salaries Expense Depreciation Expense Total Expenses Net Income (Loss) 18,000 37,100 7,000 62,100 8,900

Solomon Corporation Statement of Stockholders Equity For the Year Ended December 31, 2018 Calculation Common Stock Retained Earnings Total Equity Retained Earnings Balance at December 31, 2017 43,000 20,600 63,600 12600+8000 Dividends (8,000) (8,000) Net Income 8,900 8,900 Balance at December 31, 2018 43,000 21,500 64,500