Question

Selected year-end account balances from the adjusted trial balance as of December 31, 2022, for Whispering Winds Corp. is provided below. Debit Credit Accounts Receivable Dividends $58,080 21,040 10,560 170,240 72,880 Depreciation Expense Equipment Salaries and Wages Expense Accounts Payable Accumulated Depreciation-Equipment Unearned Rent Revenue Service Revenue $42,400 91,840 18,320 147,040 4,960 Rent Revenue 2,880 Rent Expense Retained Earnings Supplies Expense 49,440 1,120

Answer 1

Credit Date Dec.31 Account titles and explaination Service Revenue Rent revenue Income Summary (To close revenue account) Debit $147,040 $ 4,960 $152,000 Dec.31 $ 87,440 Income Summary Rent expense Supplies expense Depreciation expense Salaries and Wages expense (To close expense account) $ 2,880 $ 1,120 $ 10,560 $ 72,880 Dec.31 $ 64,560 (152000-87440) Income Summary Retained earnings (To close net income to retained earnings) $ 64,560 Dec.31 $ 21,040 Retained earnings Dividends (To close dividends to retained earnings) $ 21,040