Question

The adjusted trial balance of

AltaAlta

Corporation at December 31 shows that sales revenue for the year was

$ 550 comma 000$550,000

and other revenue was

$ 49 comma 000$49,000.

Cost of goods sold for that same period was

$ 305 comma 000$305,000​,

while other expenses totaled

$ 210 comma 000$210,000.

The corporation declared and paid dividends of

$ 20 comma 000$20,000

during the year. The balance of retained earnings before closing entries was

$ 460 comma 000$460,000.

Read the requirements

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1. Prepare the closing entries for​ revenues, expenses, and dividends for the year. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

Begin by recording the entry to close out the revenue accounts.

Journal Entry
Date		Accounts	Debit	Credit
Dec	31

Close out the expense accounts.

Journal Entry
Date		Accounts	Debit	Credit
Dec	31

Close out the Dividends account.

Journal Entry
Date		Accounts	Debit	Credit
Dec	31

2. What was net income for the​ year?

Select the formula and enter the amounts to determine net income for the year.

	-		=	Net Income
	-		=

3. What is the ending balance of retained earnings after the closing entries are​ posted?

Select the formula and enter the amounts to determine the ending balance of retained earnings after the closing entries are posted.

						Ending Retained
	+		-		=	Earnings
	+		-		=

Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

• [1] Closing Entries

Journal Entry
Date		Accounts	Debit	Credit
Dec	31	Sales Revenue	$550,000
		Other revenue	$49,000
		Retained Earnings		$599,000
		(to close revenue)
Journal Entry
Date		Accounts	Debit	Credit
Dec	31	Retained earnings	$515,000
		Cost of Goods Sold		$305,000
		Other expenses		$210,000
		Close out the expense accounts.
Journal Entry
Date		Accounts	Debit	Credit
Dec	31	Retained earnings	$20,000
		Dividends		$20,000
		Close out the Dividends account.

• [2] Net Income

Total Revenues	-	Total Expenses	=	Net Income
$599,000	-	$515,000	=	$84,000

• [3]
  

Beginning Retained Earnings balance	+	Net Income	-	Dividends	=	Ending Retained Earnings
$460,000	+	$84,000	-	$20,000	=	$524,000