Question

At December 31, 2019, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $63,400; Cost of Goods Sold, $33,300; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends, $5,000; Wages Expense, $8,000, and Interest Payable, $2,100. Required: 1. Prepare the closing entries for Aulani at December 31, 2019. If an amount box does not require an entry, leave it blank. Dec. 31 (Close revenues) Dec. 31 (Close expenses) Dec. 31 < Previous Next > Check My Work 3 more Check My Work uses remaining, Save and Exit Submit Assignment for Grading All work saved

Answer 1

Solution: 1
	Closing entry for revenue
Journal Entries
Date	Account Title and explanation	Debit	Credit
Dec. 31	Service Revenue	$                    63,400
	Income Summary		$                      63,400
	(To close the revenue account)
	Closing entry for Expenses
Dec. 31	Income Summary	$                    44,500
	Cost of Goods Sold		$                      33,300
	Interest Expenses		$                        3,200
	Wages Expenses		$                        8,000
	(To Close Expenses accounts)
	Closing entries for Income summary
Dec. 31	Income Summary ($ 63,400 - $ 44,500)	$                    18,900
	Retained Earnings		$                      18,900
	(To Close the income Summary and transferred to retained Earnings)
Solution: 2
	Closing process will increase the retaiend Earnings by $ 18,900
	Answer =
	Increase of $ 18,900