Prepare Closing Entries Using the Income Summary Account. Close the temporary accounts to income summary. The...

Prepare Closing Entries Using the Income Summary Account. Close the temporary accounts to income summary. The balance of $8,500 in the retained earnings account is from the beginning of the year. What is the ending retained earnings balance after the closing entries?

Company
	Income Statement for the year ending December 31
			Debit	Credit

Retained Earnings				8,500
Dividends			2,000
Sales				20,000
Cost of Goods Sold			8,000
Selling and Administrative Expenses			3,000
Interest Expense			1,500
Total Expenses			14,500
				28,500
Net Income/Loss		14,000

Expert Solution

Closing Entries:
Accounts title and explanations		Debit $	Credit $
Sales Account Dr.		20000
Income Summary			20000

Income Summary Account Dr.		12500
Cost of Goods sold Account			8000
Selling and admin expense			3000
Interest expense			1500

Income Summary Account Dr.		7500
Retained earnings Account			7500

Retained earnings account Dr.		2000
Dividend account			2000


Balance in Retained Earnings:
Beginning balance in Retained earningd	8500
Add: Net income for the yeear	7500
Less: Dividend paid	2000
Ending balance in Retained earnings	14000

ekkarill92 answered 2 years ago

1. The fourth step in the closing procedure is to close the Income Summary account into...

1. The fourth step in the closing procedure is to close the Income Summary account into the Capital account False True 2. The post-closing trial balance will include a) Rent Expense. b) Income from Services. c) Depreciation Expense. d) Accumulated Depreciation. e) Drawing. 3. The entry to close Income Summary, assuming a net loss, would involve a a) credit to Income Summary. b) debit to net income. c) credit to capital. d) credit to cash.

Closing Entries On July 31, the close of the fiscal year, the balances of the accounts...

Closing Entries On July 31, the close of the fiscal year, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are as follows: Accumulated Depreciation—Building $365,000 Inventory $115,000 Administrative Expenses 440,000 Notes Payable 100,000 Building 810,000 Retained Earnings 455,000 Cash 78,000 Sales 1,437,000 Common Stock 75,000 Sales Tax Payable 4,500 Cost of Goods Sold 775,000 Selling Expenses 160,000 Dividends 15,000 Store Supplies 16,000 Interest Expense 6,000...

Using the information below, prepare Closing Entries and Post-Close Trial Balance: 1. On January 1, 2020,...

Using the information below, prepare Closing Entries and Post-Close Trial Balance: 1. On January 1, 2020, Dreamland purchased land for $10,000 and a building for $90,000. The land was paid for with cash. The building was paid for with $5,000 cash and the remainder was financed with a 10-year notes payable. 2. Paid the accounts payable balance from 2019. 3. Purchase $500 of supplies on account. 4. Purchased 100 alarm systems (inventory) on account at a cost of $200 each....

Prepare Closing Entries Cash 162,985.00 - Accounts receivable 124,661.50 - Allowance

Prepare Closing Entries Cash 162,985.00 - Accounts receivable 124,661.50 - Allowance for doubtful accounts - 3,425.57 Inventory 20,670.00 - Supplies 11,550.00 - Prepaid insurance - - Prepaid expense, other - - P,P & E –Store Equipment 278,000.00 - Accumulated depreciation – Store Equipment - 35,600.00 P,P & E –Office Equipment 25,000.00 - Accumulated depreciation – Office Equipment - 10,000.00 P,P & E – Building 617,500.00 - Accumulated depreciation...

Prepare the Closing Entries necessary to close out the Statement of Activities NOTE: Each general ledger...

Prepare the Closing Entries necessary to close out the Statement of Activities NOTE: Each general ledger account from the Statement of Activities gets closed out to one of two accounts: Either a) Net Assets With Donor Restrictions OR b) Net Assets WITHOUT Donor Restrictions. These are both balance sheet accounts. Transaction 1: The DONOR gives you $2,000 cash to use for scholarships Transaction 2: The DONOR given you $1,000 and you can use it for any programs Transaction 3: The...

Fill out the summary of T-Accounts for 1. Revenue and Expenses (Temporary Income Statement Accounts) ...

Fill out the summary of T-Accounts for 1. Revenue and Expenses (Temporary Income Statement Accounts) -Includes: Sales and Service Revenue, Costs of Goods sold, Wages Expense, Insurance Expense, Rent Expense, Depreciation Expense. 2. Assets (Permanent Balance Sheet Accounts) -Includes: Cash, Inventory, accounts receivable, prepaid insurance, equipment, accumulated depreciation, prepaid rent. 3. Liabilities and Equities (Permanent Balance Sheet Accounts) -Includes: Accounts payable, unearned revenue, wages payable, common stock, retained earnings 4. What are the total Assets? 5. What...

1. Describe the process of closing the accounts and why we close the accounts at the...

1. Describe the process of closing the accounts and why we close the accounts at the end of the year. 2. If management gets a bonus based on the Profit of the company, describe in your own words how management could change the net income using an estimate. Give a clear example. 3. If you were starting a restaurant, would you choose to start as a proprietorship, partnership, or corporation. Give a full analysis of your reasons.

What is a temporary account? What is a permanent account? How do they impact the closing...

What is a temporary account? What is a permanent account? How do they impact the closing process?

Use the following partial listing of T accounts to complete this exercise. 1. Prepare closing entries...

Use the following partial listing of T accounts to complete this exercise. 1. Prepare closing entries dated January 31, 20--. Do not enter the posting references until you have completed part 2. If an amount box does not require an entry, leave it blank. 2. Post the closing entries to the T accounts following the top-down journal entry order. If there is more than one closing entry for an account, enter in the order given in the journal above. Then,...

Prepare an adjusted trial balance. If an amount Ledger Accounts, Adjusting Entries, Financial Statements, and Closing...

Prepare an adjusted trial balance. If an amount Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional Spreadsheet. The unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows: Recessive Interiors Unadjusted Trial Balance January 31, 2019 Debit Balances Credit Balances 11 Cash 13,100 13 Supplies 8,000 14 Prepaid Insurance 7,500 16 Equipment 113,000 17 Accumulated Depreciation—Equipment 12,000 18 Trucks 90,000 19 Accumulated Depreciation—Trucks 27,100 21 Accounts Payable 4,500 31 Jeanne McQuay, Capital...

Question