debit credit retained earnings 17150 service revenue 30500 advertising expense 1200 depreciation expense 10750 interest expense...

	debit	credit
retained earnings		17150
service revenue		30500
advertising expense	1200
depreciation expense	10750
interest expense	560
salaries expense	5000
supplies expense	2500
utilities expense	2080
dividends	1000

a Prepare Sparks’ income statement and statement of retained earnings for the month of June.
b Prepare the appropriate closing entries at 30 June.

c What is the purpose of ‘closing the books’ at the end of an
accounting period?

Expert Solution

ekkarill92 answered 1 year ago

An adjusting entry shows a debit to Depreciation Expense. The credit would be to Accumulated Depreciation....

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Indicate the effect each account has on retained earnings. (increase, decrease, or no effect) a)advertising expense...

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A firm has S600,000 earnings before depreciation, interest, taxes. The firm has a depreciation expense of...

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2013 2014 sales 2100 Cost of Goods Sold 1200 Depreciation Expense 225 Interest Expense 175 Current...

2013 2014 sales 2100 Cost of Goods Sold 1200 Depreciation Expense 225 Interest Expense 175 Current Assets 1000 1300 Total Fixed Assets 3500 4000 Accumulated Depreciation 1250 This can be determined from the information given Current Liabilities 900 975 Long-term Debt 1500 1350 Common Stock 400 This can be determined from the information given Question 1 part one) Use the information above to construct a 2014 income statement and balance sheets for both years. The average tax rate is 35%...

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You are given the following information for Bowie Pizza Co.: Sales = $76,000; Costs = $33,100; Addition to retained earnings = $6,900; Dividends paid = $2,340; Interest expense = $5,600; Tax rate = 22 percent. Calculate the depreciation expense.

You are given the following information for Bowie Pizza Co.: Sales = $76,000; Costs = $33,100; Addition to retained earnings = $6,900; Dividends paid = $2,340; Interest expense = $5,600; Tax rate = 22 percent. Calculate the depreciation expense. (Do not round intermediate calculations.)

LO3 Adjustment for supplies used: debit Supplies Expense and credit Supplies. Adjustment for expired insurance: debit...

LO3 Adjustment for supplies used: debit Supplies Expense and credit Supplies. Adjustment for expired insurance: debit Insurance Expense and credit Prepaid Insurance. Adjustment for depreciation: debit Depreciation Expense and credit Accumulated Depreciation. Adjustment for accrued wages: debit Wages Expense and credit Wages Payable. Complete the work sheet for Sheila's Salon for the month of November. Adjustment information: (a) Depreciation of equipment for the month of November, $750. (b) Accrued wages owed at the end of November, $325. (c) Supplies used...

For the most recent year, Camargo, Inc., had sales of $550,000, cost of goods sold of $245,320, depreciation expense of $62,400, and additions to retained earnings of $74,800.

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