Question

After the accounts have been adjusted at January 31, the end of the fiscal year, the following balances are taken from the ledger of Harrison's Dog Walking Service Company: Retained Earnings $354,030 Dividends 6,060 Fees Eamed 124,010 Wages Expense 47,510 Rent Expense 15,690 Supplies Expense 15,950 Miscellaneous Expense 1,790 < Journalize the two entries required to close the accounts. If an amount box does not require an entry, leave it blank Jan. 31 Tees Earned Wages Expense Rent Expense Supplies Expense Miscellaneous Expense Jan. 31

Answer 1

Date	General Jounral	Debit	Credit
Jan. 31	Fees earned	$124,010
	Wages Expense		$47,510
	Rent Expense		$15,690
	Supplies Expense		$15,950
	Miscellaneous Expense		$1,790
	Retained Earnings                [Refer working note]		$43,070

.

.

Date	General Jounral	Debit	Credit
Jan. 31	Retained Earnings	$6,060
	Dividends		$6,060

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.

Working note - Calculation of Net Income / (loss)
Revenues:
Fees earned		$124,010
Expenses:
Wages Expense	$47,510
Rent Expense	$15,690
Supplies Expense	$15,950
Miscellaneous Expense	$1,790
Total expenses		$80,940
Net income                     [$124,010 - $80,940]		$43,070