Question

After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Nuclear Landscaping Co.:

Retained Earnings	$3,551,000
Dividends	41,500
Fees Earned	1,200,000
Wages Expense	741,700
Rent Expense	68,600
Supplies Expense	14,950
Miscellaneous Expense	8,750

Journalize the four entries required to close the accounts. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS
Nuclear Landscaping Co.
General Ledger
ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Rent 15 Land LIABILITIES 21 Accounts Payable 22 Unearned Fees 23 Wages Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary	REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 52 Rent Expense 53 Supplies Expense 59 Miscellaneous Expense

Answer 1

• Closing Journal Entries

Closing Entry #	Accounts title	Debit	Credit
#1	Fees Earned	$      1,200,000.00
	Income Summary		$     1,200,000.00
	(Revenue account closed)
#2	Income Summary	$          834,000.00
	Wages Expenses		$        741,700.00
	Rent Expense		$           68,600.00
	Supplies Expense		$           14,950.00
	Miscellaneous Expense		$             8,750.00
	(Expense accounts closed)
#3	Income Summary	$          366,000.00
	Retained Earnings		$        366,000.00
	(Income Summary Net Income balance closed)
#4	Retained Earnings	$            41,500.00
	Dividends		$           41,500.00
	(Dividend account closed)