Question

Adjusted Trial Balance For the Year Ending December 31, 2016 Debit Credit Cash $44,000 Accounts receivable 56,000 Equipment 376,000 Accumulated depreciation $72,000 Notes payable 60,000 Common stock 130,000 Retained earnings 142,000 Service fees earned 348,000 Rent expense 88,000 Salaries expense 116,000 Depreciation expense 72,000 0 Totals $752,000 $752,000 a. Based on Anderson's adjusted trial balance, Net Income for the period equals? b. How to close Service Fees Earned? How to close Rent, Salaries, Depreciation Expenses? c. The balance of Retained Earnings after closing on December 31, 2016 will be?

use the following adjusted trial balance sheet for Anderesen corporation for the answers to a b and c

Answer 1

Ans a.
Ansderson Corporation
Income Statement
for the period ending Dec 31,2016
Particulars	Amt $
Service Revenue	348,000
Operating Expenses
Salaries Expenses	116,000
Rent Expense	88,000
Depreciation Expense	72,000
Total Operating Expense	276,000
EBIT	72,000
Interest Expense	-
EBT	72,000
Income Tax Expense	-
Net Income	72,000

So Net Income for the period =$276,000

Ans b.
Closing Temporary Accounts
Particulars	Dr $	Cr $
Service Revenue		348,000
Income Summary	348,000
Salaries Expenses		116,000
Rent Expense		88,000
Depreciation Expense		72,000
Income Summary	276,000
Income Summary	72,000
Retained Earning		72,000

Ans c.
Ansderson Corporation
Statement of Retained Earning
for the period ending Dec 31,2016
Particulars	Amt $
Beginning Balance Retained Earning	142,000
Add : Net Income from 2016 Income statement	72,000
Less : Dividend Paid	-
Ending Balance Retained Earning Dec 31,2016	214,000