Prepare closing entries for Bagley Consulting Company. What is the net income for this accounting period?...

Prepare closing entries for Bagley Consulting Company. What is the net income for this accounting period? What is the balance of retained earnings after the closing? BAGLEY CONSULTING COMPANY Adjusted Trial Balance Account Title Debits Credits Cash $4,550 Accounts receivable 8,500 Prepaid insurance 1,750 Land 230,000 Buildings & Equipment 169,500 Accumulated depreciation—buildings & Equipment $79,350 Accounts payable 29,900 Salaries and wages payable 1,400 Deferred rent revenue 950 Common stock 250,000 Retained earnings 48,300 Sales revenue 86,500 Interest revenue 4,800 Rent revenue 5,050 Salaries and wages expense 36,400 Depreciation expense 11,550 Insurance expense 1,750 Utility expense 22,700 Maintenance expense 19,550 Totals $506,250 $506,250

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Expert Solution

Closing entries

Date	account and explanation	debit	credit
	Sales revenue	86500
	Rent revenue	5050
	Interest revenue	4800
	Income summary		96350
	(To close revenue)

	Income summary	91950
	Salaries and wages expense		36400
	Depreciation expense		11550
	Insurance expense		1750
	Utility expense		22700
	Maintenance expense		19550
	(To close expense)

Net income = 96350-91950 = 4400

Ending retained earnings = 48300+4400 = $52700

ekkarill92 answered 1 year ago

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