Preparing closing entries
The following financial information was taken from the books of Ritz Salon.
Account Balances as of December 31,2011 | |
Accounts Receivable | $28,000 |
Accounts Payable | 7,500 |
Advertising Expense | 2,500 |
Cash | 40,300 |
Common Stock | 20,000 |
Dividends | 5,000 |
Land | 13,500 |
Prepaid Rent | 3,200 |
Rent Expense | 7,800 |
Retained Earnings 1/1/2011 | 19,400 |
Salaries Expense | 32,000 |
Salaries Payable | 11,800 |
Service Revenue | 76,500 |
Supplies | 400 |
Supplies Expense | 2,500 |
Required
a.Prepare the journal entries necessary to close the temporary accounts December 31, 2011, for Ritz Salon.
b.What is the balance in the Retained Earnings account after the closing entries are posted?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.