Question

On January 1, 2018, Red Flash Photography had the following balances: Cash, $16,000; Supplies, $8,400; Land, $64,000; Deferred Revenue, $5,400: Common Stock $54,000; Retained Earnings, $29,000. During 2018, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $24,000. 2. May 20 Provide services to customers for cash, $39,000, and on account, $34,000. 3. August 31 Pay salaries to employees for work in 2018, $27,000. 4. October 1Purchase rental space for one year, $16,000. 5. November 17 Purchase supplies on account, $26,000. 6. December 30 Pay dividends, $2,400. The following information is available on December 31, 2018: 1. Employees are owed an additional $4,400 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $5,400 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed. Prepare closing entries. (If no entry is required for a transaction/event, select "No Journal Entry quired" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 > Record the entry to close the revenue accounts. Note: Enter debits before credits. General Journal Debit Credit Date December 31 2018 Record entry Clear entry View general journal

Answer 1

Credit Date General Journal December 31, 2018 Service Revenue Retained Earnings Debit $ 78,400 $ 78,400 (To Close the Revenue Accounts) $ 64,400 December 31, 2018 Retained Earnings Salaries Expense Rent Expense Supplies Expense $31,400 $ 4,000 $ 29,000 (To Close Expense Accounts) December 31,2018 Retained Earnings Dividends $ 2,400 $ 2,400 (To Close the Dividend Account) Note : Please comment down for any issues Note: If Retained Earnings is not available as title, Use income Summary