Question

Prepare Closing Entries Using the income Summary Account The Century Company's adjusted trial balance contains the following balances as of December 31: Retained Earnings $25.500; Dividends $6,000; Sales $60,000, Cost of Goods Sold $24,000; Selling and Administrative Expenses $9,000; Interest Expense 54,500. Prepare the closing entries for The Century Company. Close the temporary accounts to income summary. General Journal Debit Credit + . To close the revenue account Cost of goods sold Selling and administrative expense To close the expense accounts To dosetheincome summary account To close the dividends account The balance of $25,500 in the retained earnings account is from the beginning of the year. What is the ending retained earnings balance after posting the closing entries? $

Answer 1

(Amourt in $ Dobit Credit GO1000 Go1000 Revenue Alc To Income statement Income Statement 330.00 To Cost of Groude sold To Selling eelm. Suporte Q4000 9000 16500 Income Statement To Retained earning 16500 Gooo Income statement To Dindend Alc 6ooo Alc >Closing Balance of Retained fairing $42000 → Working Note :- Calculation of Retained Ear Earrings Balance - Sales less. Cost of Goods sold Less: Selling & Adm. Exp. ten Interect Exp. Income less Dindend 60.006 24000 gooo 4500 22500 GoOo 16500 Add Opening Retained Saning 25500 closing Repaindl Earnings 12000