During 2020, Harris Inc. reported revenues of $237,000 and expenses of $130,000, and declared cash dividends...

During 2020, Harris Inc. reported revenues of $237,000 and expenses of $130,000, and declared cash dividends of $65,000. Retained Earnings on December 31, 2019 was $165,000. Required: Prepare closing journal entries as at December 31, 2020; show your journal entries. Calculate the balance in Retained Earnings on December 31, 2020. Please show your work.

(use appendix to solve)

Solutions

Expert Solution

Revenues = $237,000

Expenses = $130,000

Cash dividends = $65,000

Retained earnings, beginning = $165,000

Net income = Revenues - Expenses

= 237,000-130,000

= $107,000

Date	General Journal	Debit	Credit
Dec-31	Revenues	$237,000
	Income Summary		$237,000
	( To close revenues)
Dec-31	Income Summary	$130,000
	Expenses		$130,000
	( To close expenses)
Dec-31	Income Summary	$107,000
	Retained earnings		$107,000
	( To close income summary)
Dec-31	Retained earnings	$65,000
	Dividend payable		$65,000
	( To close dividends)

Statement of Retained Earnings
Beginning retained earnings	165,000
Net Income	107,000
	$272,000
Dividends	-65,000
Retained earnings, Ending	$207,000

The balance in Retained Earnings on December 31, 2020 = $207,000

Please give a positive rating if you are satisfied with this solution and if you have any query kindly ask.Thanks!!!

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Cash dividends of $71,390 were declared during the year. Cash dividends payable were $10,752 at the...

Cash dividends of $71,390 were declared during the year. Cash dividends payable were $10,752 at the beginning of the year and $15,808 at the end of the year. The amount of cash for the payment of dividends during the year is a.$71,390 b.$60,638 c.$87,198 d.$66,334

Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000...

Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is A) $60,000 B) $50,00 C) $55,000 D) $65,000 ------------------------------------------------------- A company with 81,210 authorized shares of $7 par common stock issued 47,603 shares at $12 per share. Subsequently, the company declared a 2% stock dividend on a date when the market price...

3/ revenues and expenses, how and where they are reported ?

Business is - sole proprietorship. $130,000; in revenues and Expenses are: $50,000 general; $5,000 employee health...

Business is - sole proprietorship. $130,000; in revenues and Expenses are: $50,000 general; $5,000 employee health insurance; $3,000 for her health insurance. How much Self-Employment tax can be I able to deduct for AGI? $10,597.16 $5,298.58 $5,737.50 $11,475.00

Golden Corporation declared and paid $3,900 of cash dividends during the current year ended December 31....

Golden Corporation declared and paid $3,900 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Required: 1. Complete the horizontal analyses for each item in Golden Corporation’s comparative financial statements. TIP: Calculate the increase (decrease) by subtracting the previous year from the current year. Calculate the percentage by dividing the amount of increase (decrease) by the previous year balance. 2-a. Use the horizontal (trend) analyses to identify the accounts where...

Golden Corporation declared and paid $3,700 of cash dividends during the current year ended December 31....

Golden Corporation declared and paid $3,700 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Current Previous Income Statement Sales revenue $ 215,000 $ 193,000 Cost of goods sold 124,000 114,000 Gross profit 91,000 79,000 Operating expenses 60,300 56,000 Interest expense 3,400 3,300 Income before income taxes 27,300 19,700 Income tax expense 8,190 3,700 Net income $ 19,110 $ 16,000 Balance Sheet Cash $ 5,410 $ 8,700 Accounts receivable (net)...

How are the dividends declared and paid by a subsidiary during the year eliminated in the...

How are the dividends declared and paid by a subsidiary during the year eliminated in the consolidated workpapers under each method of accounting for investments?

Sheridan Inc. earns $470000 and pays cash dividends of $100000 during 2020. Carla Vista Corporation owns...

Sheridan Inc. earns $470000 and pays cash dividends of $100000 during 2020. Carla Vista Corporation owns 62700 of the 209000 outstanding shares of Sheridan Inc. How much revenue from investment should Carla Vista report in 2020? Sunland Inc. earns $550000 and pays cash dividends of $145000 during 2020. Wildhorse Corporation owns 73850 of the 211000 outstanding shares of Sunland. What amount should Wildhorse show in the investment account at December 31, 2020 if the beginning of the year balance in...

Pet Boutique Corp. reported $2,952,010 of profit for 2020. On November 2, 2020, it declared and...

Pet Boutique Corp. reported $2,952,010 of profit for 2020. On November 2, 2020, it declared and paid the annual preferred dividends of $203,000. On January 1, 2020, Pet Boutique had 104,000 and 520,000 outstanding preferred and common shares, respectively. The following transactions changed the number of shares outstanding during the year: Feb. 1 Declared and issued a 20% common share dividend. Apr.30 Sold 159,000 common shares for cash. May 1 Sold 50,000 preferred shares for cash. Oct. 31 Sold 42,000...

2. Haliburton, Inc. reported the following financial information for 2013: Revenues $100 million Costs & Expenses...

2. Haliburton, Inc. reported the following financial information for 2013: Revenues $100 million Costs & Expenses (excl Depreciation) $ 80 million Depreciation $ 5 million Taxes $ 6 million Net Income $ 9 million Fixed Assets (gross) $100 million Working Capital $ 40 million The firm expects revenues, costs, expenses (excluding depreciation), and working capital to grow at 10% per year for the next three years. It also expects to invest $20 million per year in fixed assets, which includes...

Subjects