Question
In: Accounting
Retained Earnings T-Account: Debit- 200 and 400/ Credit-700 Dividends T-Account: Debit-100, 100, and 200/ Credit-400 Income...
Retained Earnings T-Account: Debit- 200 and 400/ Credit-700
Dividends T-Account: Debit-100, 100, and 200/ Credit-400
Income Summary T-Acount: Debit- 1,500/ Credit- 800, and 700
Find (a) the revenue for the period (b) Dividends for the period (c) Net income (d) Ending balance of retained earnings
Solutions
Expert Solution
Requirement (a)
Revenue for the period = $1500.
Revenue earned in a period is debited to income summery account and the amount debited to income summery account.
Closing entry to transfer revenue to income summery is as follows
Revenues $1500
Income summery $1500
Requirement (b)
Dividends for the period= $400
Dividend account is debited when dividends is declared and all the balance in dividend is transferred to retained earnings account at the end of the year. Amount debited to dividend are $200, $100 and $100 which makes a total $400.
Requirement (c )
Net income = $700
Net income is transferred to retained earnings account when debit in income summary is less than credits in income summery account.
Total credit in income summery is $700 which means $700 is Net income of the year.
Requirement (d)
Ending balance of Retained earnings = $300
Total credit for income plus beginning balance minus debit for dividend is the balance in retained earnings account.
Total credits = $700
Total debits =$400
Beginning balance = $100
Ending balance = $700+100-400= $300
ekkarill92 answered 2 years agoRelated Solutions
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ACCOUNT Work in Process—Baking Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Mar. 1...
ACCOUNT Work in Process—Baking
Department
ACCOUNT NO.
Date
Item
Debit
Credit
Balance
Debit
Credit
Mar.
1
Bal., 7,200 units, 4/5 completed
12,528
31
Direct materials, 129,600 units
168,480
181,008
31
Direct labor
49,490
230,498
31
Factory overhead
27,838
258,336
31
Goods finished, 131,400 units
249,372
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Item
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Balance
Debit
Credit
Mar.
1
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11,232
31
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172,800
184,032
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50,600
234,632
31
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263,088
31
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253,944
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31
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9,144
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Revenue StatementDecember 31, 2019
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2,240
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(7,500)
Net revenues
$173,740
Less: Selling expenses
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Gross profit
$154,740
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$4,100
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interest expense
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salaries expense
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supplies expense
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utilities expense
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