Question

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The year-end financial statements of Rattlers Tax Services are provided below.

RATTLERS TAX SERVICES
Income Statement
Service revenue				$	70,500
Expenses:
Salaries	$	44,600
Utilities		6,800
Insurance		4,400
Supplies		1,400			57,200
Net income				$	13,300

RATTLERS TAX SERVICES
Statement of Stockholders' Equity
	Common Stock			Retained Earnings			Total Stockholders' Equity
Beginning balance, Jan. 1	$	46,000		$	23,100		$	69,100
Issue stock		16,000						16,000
Net income					13,300			13,300
Dividends					(4,600	)		(4,600	)
Ending balance, Dec. 31	$	62,000		$	31,800		$	93,800

RATTLERS TAX SERVICES
Balance Sheet
Assets				Liabilities
Cash	$	3,300		Accounts payable				$	5,300
Accounts receivable		5,800		Stockholders' Equity:
Land		90,000		Common stock	$	62,000
				Retained earnings		31,800			93,800
Total assets	$	99,100		Total liabilities and equities				$	99,100

2.

value:
4.00 points

Required information

Required:

1. Record year-end closing entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

References

eBook & Resources

General JournalLearning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Difficulty: 2 MediumLearning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Check my work

3.

value:
1.00 points

Required information

2. Prepare a post-closing trial balance. (Hint: The balance of Retained Earnings will be the amount shown in the balance sheet.)

References

eBook & Resources

Financial StatementsLearning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Difficulty: 2 MediumLearning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Check my work

Answer 1