Question

prepare the closing journal entries

what is the updated value of retained earnings amount

Answer 1

1.

Date	General Journal	Debit	Credit
Aug-31	Service revenue	$   34,600
	Rent revenue	$   13,100
	Income summary		$   47,700
	(To close revenue accounts)
Aug-31	Income summary	$   33,600
	Salaries and wages expense		$   18,100
	Supplies expense		$     2,000
	Rent expense		$   10,800
	Insurance expense		$     1,500
	Depreciation expense		$     1,200
	(To close expenses)
Aug-31	Income summary ($47,700-$33,600)	$   14,100
	Retained earnings		$   14,100
	(To close income summary)
Aug-31	Retained earnings	$     2,800
	Dividends		$     2,800
	(To close dividends)

2.

Retained earings
Dividends paid	$   2,800	$     5,500	Beginning balance
		$   14,100	Net income
		$   16,800	Ending balance

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