Question

I only need help with the T-accounts and Statement of Retained Earnings!

Chapter 4 D2L Homework Assigned Exercise 22 on page 225 with modifications. Prepare closing entries as required in problem. Can work in four journal entries with Income Summary as Can work in three journal entries as shown in class. Your choice. Write out the t-accounts and add in the amounts from the journal entries to calculate an ending balance. Also, prepare Statement of Retained Earnings.

Answer 1

1. Closing Journal entries-

Accounts title and Details	Debit (In $)	Credit (In $)
Revenue	37,500
Income summary		37,500
(Closing of revenue accounts)
Income summary	44,400
Salaries		33,200
Supplies Exp.		2,700
Depreciation Expenses-Buildings		7,000
Depreciation Expenses-Furniture		1,500
(Closing of expenses accounts)
Retained earning	6,900
Income summary		6,900
(Closing of Income summary )
Retained earnings	14,000
Dividends		14,000
(Closing of of dividend)

2. Stement of Retained Earnings

Particulars	Amount (In $)
Opening balance of retained earning	$49,000
-Net loss	6.900
Balance of retained earning before distribution of dividend	42,100
-Dividend	14,000
Closing balance of retained earning	$28,100

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