Carter Corp. uses the "Income Summary" account when it makes its closing entries. The following information is available for the year ending 12/31/X1: The "Service Revenue" account has an account balance of $200,000. The "Salaries Expense" account has an account balance of $75,000. The "Dividends" account has an account balance of $10,000. Required: Assuming these three accounts are the only temporary accounts Carter has at year-end, prepare their closing entries.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Carter Corp. uses the "Income Summary" account when it makes its closing entries.

The following information is available for the year ending 12/31/X1:

  • The "Service Revenue" account has an account balance of $200,000.
  • The "Salaries Expense" account has an account balance of $75,000.
  • The "Dividends" account has an account balance of $10,000.

Required: Assuming these three accounts are the only temporary accounts Carter has at year-end, prepare their closing entries.

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