Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report. NOT: retained eranings = net profit, dividends = withdrawal FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Revenue:               Counseling revenue         $ 490,000   Expenses:               Advertising expense $ 2,300           Salaries expense   91,000           Office supplies expense   2,500           Utilities expense   800           Malpractice insurance expense   6,000           Office rent expense   25,000           Continuing education expense   2,350           Depreciation expense: fixtures   4,500           Miscellaneous expense   6,000           Income taxes expense   39,500       179,950   Net income         $ 310,050       Fick’s statement of retained earnings indicates that a $8,000 cash dividend was declared and paid during the current year.   Prepare the necessary closing entries on December 31 of the current year. If Fick’s Retained earnings account had a $91,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31?     Complete this question by entering your answers in the tabs below.   Required A Prepare the necessary closing entries on December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)       1) Record the entry to close the revenue account.                             Transaction General Journal Debit Credit 1                                                   2) Record the entry to close expense accounts.           Transaction General Journal Debit Credit 2                                                                                                                           3) Record the transfer of Net income/loss.         Transaction General Journal Debit Credit 3                                                 4) Record the entry to close dividends.         Transaction General Journal Debit Credit 4

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report.

NOT: retained eranings = net profit, dividends = withdrawal

FICK PSYCHOLOGICAL SERVICES, INC.

Income Statement

For the year ended December 31, current year

Revenue:

 

 

 

 

 

 

 

Counseling revenue

 

 

 

 

$

490,000

 

Expenses:

 

 

 

 

 

 

 

Advertising expense

$

2,300

 

 

 

 

 

Salaries expense

 

91,000

 

 

 

 

 

Office supplies expense

 

2,500

 

 

 

 

 

Utilities expense

 

800

 

 

 

 

 

Malpractice insurance expense

 

6,000

 

 

 

 

 

Office rent expense

 

25,000

 

 

 

 

 

Continuing education expense

 

2,350

 

 

 

 

 

Depreciation expense: fixtures

 

4,500

 

 

 

 

 

Miscellaneous expense

 

6,000

 

 

 

 

 

Income taxes expense

 

39,500

 

 

 

179,950

 

Net income

 

 

 

 

$

310,050

 

 

 

Fick’s statement of retained earnings indicates that a $8,000 cash dividend was declared and paid during the current year.

 

  1. Prepare the necessary closing entries on December 31 of the current year.
  2. If Fick’s Retained earnings account had a $91,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31?

 

 

Complete this question by entering your answers in the tabs below.

 

  • Required A

Prepare the necessary closing entries on December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

 

 

 

1) Record the entry to close the revenue account.

 

 

 

 

 

 

 

 

 

 

 
 

 

 

Transaction

General Journal

Debit

Credit

1

     
       
       
       
       
   



 

 

 

 

2) Record the entry to close expense accounts.

 

 

 

 

 

Transaction

General Journal

Debit

Credit

2

     
       
       
       
       
       
       
       
       
       
       
       
   



 

 

 

 

 

 

 

 

 

 

 

 

3) Record the transfer of Net income/loss.

 

 

 

 

Transaction

General Journal

Debit

Credit

3

     
       
       
       
       
   



 

 

 

4) Record the entry to close dividends.

 

 

 

 

Transaction

General Journal

Debit

Credit

4

     
       
       
       
       
       

 

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