Question

The accounts of Meadowbrook Services, Inc., January 31, 2018, are well in alcalder Con to view the Read the Requirement 1. Allians have been journalized and posted, but the closing entre not yet de jour Meadowbrook's longer alary 31, 2018 Recordsbits the credits. Ele explanations from any Jual ) Record the closing wis for direkt Jary 31, 2018. Begin by casing the reverse account Journal Entry Accounts Debit Credit 11 31

Answer 1

1. Closing Entries -

Date Credit Meadowbrook Closing Entries Accounts Title Debit Service Revenue $ 95,500 Income Summary (Being Service revenue closed) 1 $ 95,500 2 Income Summary $46,300 Advertising Expense Depreciation Expense - Equipment Salary Expense Interest Expense Supplies Expense (Being expenses account closed) $11,200 $ 2,100 $ 27,800 $ 200 $ 5,000 3 Income Summary $ 49,200 Retained Earnings (Being Balance transfer to retained earnings) $49,200 4 Retained Earnings $ 13,000 Dividend Declared $ 13,000 (Being dividend transfer to retained earnings)

2. Income Statement -

Meadowbrook Income Statement For the month ended January 31 Service Revenue $ 95,500 Expenses: Advertising Expense $11,200 Depreciation Expense - Equipment $ 2,100 Salary Expense $ 27,800 Interest Expense $ 200 Supplies Expense $ 5,000 Total Expenses $ 46,300 Net Income $ 49,200

3. Statement of Retained Earnings -

Meadowbrook Statement of Retained Earnings For the month ended January 31 Retained Earnings, Beginning $ 13,700 Add: Net Income $ 49,200 Less: Dividend $(13,000) $ 36,200 Retained Earnings, Closing $ 49,900

4. Balance Sheet -

Meadowbrook Balance Sheet At January 31 Assets Cash $ 22,000 Accounts Recivable $ 1,000 Supplies $ 6,400 Prepaid Expenses $ 5,000 Equipment $ 43,000 Accumulated Depreciation, Equipement $ (7,100) Other Assets, Long Term $ 13,900 Total Assets $ 84,200 Liabilities Accounts Payable $ 10,000 Salary Payable $ 2,000 Uneanred Service Revenue $ 3,000 Current Portion of long term Notes Payab $ 2,200 Notes Payable, Long Term $ 15,600 Total Liabilities $ 32,800 Stockholder's Equity Common Stock Retained Earnings, January 31, 2017 Total Stockholder's Equity $ 1,500 $ 49,900 $ 51,400 Total Liabilities and Stockholder's Equity $ 84,200

Explanation -

Retained Earnings increased due to Net Income credited to it.