Question

On January 1, 2021, Red Flash Photography had the following balances: Cash, $23,000; Supplies, $9,100; Land, $71,000; Deferred Revenue, $6,100; Common Stock $61,000; and Retained Earnings, $36,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $31,000. 2. May 20 Provide services to customers for cash, $46,000, and on account, $41,000. 3. August 31 Pay salaries to employees for work in 2021, $34,000. 4. October 1 Paid for one year's rent in advance, $23,000. 5. November 17 Purchase supplies on account, $33,000. 6. December 30 Pay dividends, $3,100. The following information is available on December 31, 2021: Employees are owed an additional $5,100 in salaries. Three months of the rental space has expired. Supplies of $6,100 remain on hand. All of the services associated with the beginning deferred revenue have been performed.

I just need the closing entries for the revenue accounts, the expense accounts and the dividends accounts

Answer 1

Closing entries for the revenue accounts, the expense accounts, and the dividends accounts

Date	Accounts Titles & Explanation	Debit	Credit
December 31, 2021	Service Revenue	93,100
	Retained Earnings		$93,100
	(To record closing entries for the revenue account)
December 31, 2021	Retained Earnings	80,850
	Salaries Expense		39,100
	Rent Expense		5,750
	Supplies Expense		36,000
	(To record closing entries for the expense accounts)
December 31, 2021	Retained Earnings	3,100
	Dividends		3,100
	To record closing entries for the dividends account)

Working:

• Service Revenue = Provide services to customers for cash + on account + Deferred revenue performed = $46,000 +$41,000 + $6,100 = $93,100
• Salaries Expense = Salaries paid + Salaries outstanding for the year = $34,000 + $5,100 = $39,100
• Rent Expense = Prepaid rent * 3 / 12 = $23,000 * 3/12 = $5,750
• Supplies Expense = Supplies on January 1, 2021 + Purchase supplies - Supplies on December 31, 2021 = $9,100 + $33,000 - $6,100 = $36,000