Question

The ledger of Rios Company contains the following balances: Retained Earnings $30,000; Dividends $2,000; Service Revenue $50,000; Salaries and Wages Expense $27,000; and Supplies Expense $7,000.

Prepare the closing entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31
	(To close revenue account)
Dec. 31
	(To close expense accounts)
Dec. 31
	(To close net income/ (loss))
Dec. 31
	(To close dividends)

Answer 1

	Accounts Title and Explanation	Debit	Credit
Dec-31	Service Revenue	50,000
	Income Summary		50,000
	(To record closing of credit balance account)
Dec-31	Income Summary	34,000
	Salary and Wage Expense		27,000
	Supplies exp		7,000
	(To record closing of debit balance account)
Dec-31	Retained Earning	16,000
	Income Summary		16,000
	(To close income summary account)
Dec-31	Retained Earning	2,000
	Dividends		2,000
	(To close dividend account)