Question

The following accounts and normal balances existed at year-end. Make the four journal entries required to close the books:

Retained Earnings $22000
Dividends $6000
Fees Earned Revenue $90000
Selling expense $45000
Administrative expenses $16000
Miscellaneous expense $2300

Answer 1

No.	Accounting Titles and Explanations	Debit	Credit
1	Fees earned Revenue	$ 90,000
	Income summary		$ 90,000
	(To close Revenue Accounts )
2	Income summary	$ 63,300
	Selling Expenses		$ 45,000
	Administrative expenses		$ 16,000
	Miscellaneous expenses		$ 2,300
	(To close Expense Accounts )
3	Income summary ( $ 90,000 (-) $ 63,300 )	$ 26,700
	Retained Earnings		$ 26,700
	(To close net Income/ Loss )
4	Retained Earnings	$ 6,000
	Dividends		$ 6,000
	(To close the Dividends )