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28 July, 23:16

The ledger of Mai Company includes the following accounts with normal balances: Common Stock, $9,000; Dividends, $800; Services Revenue, $13,000; Wages Expense, $8,400; and Rent Expense, $1,600.

Prepare the necessary closing entries from the available information at December 31.

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  1. 29 July, 01:41
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    The closing entries is purposely to transfer account balances to permanents books of account, with all income statements banalces transferred to retained earnings.

    Common stock - $9000

    Dividends - $800

    Service revenue - $13,000

    Wages Expenses - $ $8,400

    Rent Expenses - $1,600

    Closing Entries

    Particulars Dr Cr

    Income Summary $10,000

    Wages Expenses $8,400

    Rent Expenses $1,600

    Service Revenue $13,000

    Income Summary $13,000

    Income Summary $3,000

    (13000-10000)

    Retained Earnings $3,000

    Retained Earnings $800

    Dividends $800
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