Question

I need help with my closing entries for revenue, expenses, and dividends... :)

Information given:

The general ledger of Zips Storage at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	24,900
Accounts Receivable		15,700
Prepaid Insurance		12,600
Land		151,000
Accounts Payable					$	7,000
Deferred Revenue						6,100
Common Stock						146,000
Retained Earnings						45,100
Totals	$	204,200			$	204,200

The following is a summary of the transactions for the year:

1.		January		9		Provide storage services for cash, $137,100, and on account, $53,700.
2.		February		12		Collect on accounts receivable, $51,800.
3.		April		25		Receive cash in advance from customers, $13,200.
4.		May		6		Purchase supplies on account, $9,800.
5.		July		15		Pay property taxes, $8,800.
6.		September		10		Pay on accounts payable, $11,700.
7.		October		31		Pay salaries, $126,600.
8.		November		20		Issue shares of common stock in exchange for $30,000 cash.
9.		December		30		Pay $3,100 cash dividends to stockholders.

Insurance expired during the year is $7,300. Supplies remaining on hand at the end of the year equal $3,200. Provide services of $12,100 related to cash paid in advance by customers.

what I have so far:

No	Date	General Journal	Debit	Credit
1	January 09	Cash	137,100
		Accounts Receivable	56,700
		Service Revenue		193,800
2	February 12	Cash	51,800
		Accounts Receivable		51,800
3	April 25	Cash	13,200
		Deferred Revenue		13,200
4	May 06	Supplies	9,800
		Accounts Payable		9,800
5	July 15	Property Tax Expense	8,800
		Cash		8,800
6	September 10	Accounts Payable	11,700
		Cash		11,700
7	October 31	Salaries Expense	126,600
		Cash		126,600
8	November 20	Cash	30,000
		Common Stock		30,000
9	December 30	Dividends	3,100
		Cash		3,100
10	December 31	Insurance Expense	7,300
		Prepaid Insurance		7,300
11	December 31	Supplies Expense	6,600
		Supplies		6,600
12	December 31	Deferred Revenue	12,100
		Service Revenue		12,100
13	December 31	Service Revenue
		Retained Earnings
14	December 31	Retained Earnings
		Salaries Expense
		Rent Expense
		Interest Expense
15	December 31	Service Revenue
		Retained Earnings

Could you double check my work and also help me out with filling out 13,14, and 15.

questions:

13: Record the closing entry for revenue

14: Record the closing entry for expenses

15: record the closing entry for cash dividends

Thank you!

Answer 1

Journal entries provided from 1 to 12 are correct, hence, answering from 13 onwards as requested.

No.	Date	General Journal	Debit	Credit
13	Dec. 31	Service Revenue ($193,800 + $12,100)	$205,900
		Income Summary		$205,900
		(To close revenue accounts)
14	Dec. 31	Income Summary	$149,300
		Salaries Expense		$126,600
		Insurance Expense		$7,300
		Supplies Expense		$6,600
		Property Tax Expense		$8,800
		(To close expense accounts)
	Dec. 31	Income Summary ($205,900 - $149,300)	$56,600
		Retained Earnings		$56,600
		(To close the net income to retained earnings)
15	Dec. 31	Retained Earnings	$3,100
		Dividends		$3,100
		(To close dividends to retained earnings)