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20 September, 11:14

Seminoles Corporation's fiscal year-end is December 31, 2021. The following is a partial adjusted trial balance as of December 31.

Accounts Debit Credit

Retained Earnings $ 13,000

Dividends $ 1,300

Service Revenue 33,000

Interest Revenue 4,300

Salaries Expense 13,300

Rent Expense 4,300

Advertising Expense 1,300

Depreciation Expense 9,300

Interest Expense 3,300

Required:

1. Prepare the necessary closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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Answers (1)
  1. 20 September, 15:05
    0
    The closing entries for the following accounts are presented below:

    1. Service Revenue A/c Dr $33,000

    Interest Revenue A/c Dr $4,300

    To Income Summary $37,300

    (Being revenue account closed)

    2. Income summary A/c Dr $31,500

    To Salaries Expense $13,300

    To Rent Expense $4,300

    To Advertising Expense $1,300

    To Depreciation Expense $9,300

    To Interest Expense $3,300

    (Being expenses accounts are closed)

    3. Income summary A/c Dr $5,800 ($37,300 - $31,500)

    To Retained earning $5,800

    (Being the difference is credited to retained earning)

    4. Retained earnings A/c Dr $1,300

    To Dividend A/c $1,300

    (Being dividend account is closed)
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