Question

The income statement for the Windsor, Inc. for the month ended July 31 shows Service Revenue $17,610, Salaries and Wages Expense $8,490, Maintenance and Repairs Expense $3,250, and Income Tax Expense $1,490. The statement of retained earnings shows an opening balance for Retained Earnings of $20,700 and Dividends $1,430. Collapse question part (a) Partially correct answer. Your answer is partially correct.

Answer 1

		Debit	Credit
July 31	Service revenue	17610
	Income summary		17610
July 31	Income summary	13230
	Salaries and wages expense		8490
	Maintenance and repairs expense		3250
	Income tax expense		1490
	(To close expense accounts)
July 31	Income summary	4380		=17610-13230
	Retained earnings		4380
	(To close net income/(loss) to retained earnings)
July 31	Retained earnings	1430
	Dividends		1430
	(To close dividends to retained earnings)