Question

[The following information applies to the questions displayed below On January 1, 2018, Red Flash Photography had the following balances: Cash, $12,000; Supplies, $8,000; Land, $60,000; Deferred Revenue, $5,000; Common Stock $50,000, and Retained Earnings, $25,000. During 2018, the company had the following transactions: 1 February 15 Issue additional shares of common stock, $20,000. 2. May 20 Provide services to customers for cash, $35.000, and on account, $30,000. 3. August 31 Pay salaries to employees for work in 2018, $23,000. r17 D ental space for one yed 000 6. December 30 Pay dividends, $2,000. The following information is available on December 31, 2018: 1 Employees are owed an additional $4,000 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $5,000 remain on hand. 4. All of the services associated with the beqinning deferred revenue have been performed. Record the entry to close the revenue accounts. 1 Record the entry to close the expense accounts Record the entry to close the dividends account. 3 5. Prepare closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the entry to close the revenue accounts. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal

Answer 1

5) Closing entries

Date	account and explanation	Debit	credit
Dec 31	Service revenue	65000
	Income summary		65000
	(To close revenue)
Dec 31	Income summary	47000
	Salaries expense		27000
	Rent expense (12000/12*3)		3000
	Supplies expense (22000-5000)		17000
	(To close expense)
Dec 31	retained earnings	2000
	Dividend		2000
	(To close dividend)