Date Account Name Post. Ref. Debit Credit 20Υ8 Closing Entries May 31 Fees Earned 40,000 Salary Expense 1,705 Rent Expense 1,600 Supplies Expense 1,370 Depreciation Expense 330 Insurance Expense 275 Miscellaneous Expense 1,295 Retained Earnings 33,425 May 31 Retained Earnings 10,500 Dividends 10,500
Date Account Name Post. Ref. Debit Credit 20Υ8 Closing Entries May 31 Fees Earned 40,000 Salary Expense 1,705 Rent Expense 1,600 Supplies Expense 1,370 Depreciation Expense 330 Insurance Expense 275 Miscellaneous Expense 1,295 Retained Earnings 33,425 May 31 Retained Earnings 10,500 Dividends 10,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello I need help completing with Preparing the closing entries below
Transcribed Image Text:### Closing Entries for the Period Ending May 31, 20Y8
**Date: May 31, 20Y8**
**Closing Entries**
1. **Fees Earned**
- Debit: 40,000
- Credit: 0
- Status: Checked
2. **Salary Expense**
- Debit: 0
- Credit: 1,705
- Status: Checked
3. **Rent Expense**
- Debit: 0
- Credit: 1,600
- Status: Checked
4. **Supplies Expense**
- Debit: 0
- Credit: 1,370
- Status: Checked
5. **Depreciation Expense**
- Debit: 0
- Credit: 330
- Status: Checked
6. **Insurance Expense**
- Debit: 0
- Credit: 275
- Status: Checked
7. **Miscellaneous Expense**
- Debit: 0
- Credit: 1,295
- Status: Checked
8. **Retained Earnings**
- Debit: 0
- Credit: 33,425
- Status: Checked
---
**Additional Entry**
**Date: May 31, 20Y8**
1. **Retained Earnings**
- Debit: 10,500
- Credit: 0
- Status: Checked
2. **Dividends**
- Debit: 0
- Credit: 10,500
- Status: Not Checked
### Explanation
This table represents the closing entries for the accounting cycle ending on May 31, 20Y8. Closing entries are used to transfer balances from temporary accounts to permanent accounts.
- **Fees Earned:** Revenue earned is closed by debiting the account and will be transferred to retained earnings or income summary.
- **Expenses:** Various expenses are credited to reduce the temporary account to zero and transfer the total to the retained earnings.
- **Retained Earnings and Dividends:** The retained earnings account is adjusted for the stated amount of dividends, signifying the distribution of earnings to shareholders.
The checks next to the entries indicate completion, except for dividends, which hasn't been marked as closed.
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