Closing Entries The adjusted trial balance prepared as of December 31, for Phyllis Howell & Company, Consultant, contains the following revenue and expense accounts: Debit Credit Service Fees Earned $92,300 Rent Expense Salaries Expense $32,800 57,700 Supplies Expense 17,600 Depreciation Expense 22,200 Retained Earnings 79,000 Dividends 21,000 Prepare journal entries to close the accounts directly to Retained Earnings. After these entries are posted, what is the balance in the Retained Earnings account?
Closing Entries The adjusted trial balance prepared as of December 31, for Phyllis Howell & Company, Consultant, contains the following revenue and expense accounts: Debit Credit Service Fees Earned $92,300 Rent Expense Salaries Expense $32,800 57,700 Supplies Expense 17,600 Depreciation Expense 22,200 Retained Earnings 79,000 Dividends 21,000 Prepare journal entries to close the accounts directly to Retained Earnings. After these entries are posted, what is the balance in the Retained Earnings account?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Closing Entries The adjusted trial balance prepared as of December 31, for Phyllis Howell & Company, Consultant, contains the following revenue and expense accounts:
Debit
Credit
Service Fees Earned
$92,300
Rent Expense
$32,800
Salaries Expense
57,700
Supplies Expense
17,600
Depreciation Expense 22,200
Retained Earnings
79,000
Dividends
21,000
Prepare journal entries to close the accounts directly to Retained Earnings. After these entries are posted, what is the balance in the Retained Earnings account?
General Journal
Date
Description
Debit
Credit
Dec.31 Service Fees Earned
92,300 v $
Retained Earnings
0 x
To close the revenue account.
Dec.31 Retained Earnings
79,000 x
Rent Expense
32,800 v
Salaries Expense
57,700 v
Supplies Expense
17,600 v
Depreciation Expense
22,200 v
To close the expense accounts.
Dec.31 Retained Earnings
79,000 x
Dividends
21,000 v
To close dividends account.
Balance in Retained Earnings at December 31 $ 0
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