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Question: Gerdes 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: GERDES PSYCHOLOGICAL SERVICES, INC. Income Statement For the Year Ended December 31, 2015 Revenue: Counseling revenue $225,000 Expenses: Advertising expense $ 1,800 Salaries expense 94,000 Office supplies expense 1,200 Utilities expense 850 Malpractice insurance expense 6,000 Office rent expense 24,000 Continuing education expense 2,650 Depreciation expense: fixtures 4,500 Miscellaneous expense 6,000 Income taxes expense 29,400 170,400 Net income $ 54,600 The firm's statement of retained earnings indicates that a $6,000 cash dividend was declared and paid during 2015. a. Prepare the necessary closing entries on December 31, 2015.

Question: Gerdes 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: GERDES PSYCHOLOGICAL SERVICES, INC. Income Statement For the Year Ended December 31, 2015 Revenue: Counseling revenue $225,000 Expenses: Advertising expense $ 1,800 Salaries expense 94,000 Office supplies expense 1,200 Utilities expense 850 Malpractice insurance expense 6,000 Office rent expense 24,000 Continuing education expense 2,650 Depreciation expense: fixtures 4,500 Miscellaneous expense 6,000 Income taxes expense 29,400 170,400 Net income $ 54,600 The firm's statement of retained earnings indicates that a $6,000 cash dividend was declared and paid during 2015. a. Prepare the necessary closing entries on December 31, 2015.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question: Gerdes 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: GERDES PSYCHOLOGICAL SERVICES, INC. Income Statement For the Year Ended December 31, 2015 Revenue: Counseling revenue $225,000 Expenses: Advertising expense $ 1,800 Salaries expense 94,000 Office supplies expense 1,200 Utilities expense 850 Malpractice insurance expense 6,000 Office rent expense 24,000 Continuing education expense 2,650 Depreciation expense: fixtures 4,500 Miscellaneous expense 6,000 Income taxes expense 29,400 170,400 Net income $ 54,600 The firm's statement of retained earnings indicates that a $6,000 cash dividend was declared and paid during 2015. a. Prepare the necessary closing entries on December 31, 2015.
Transcribed Image Text:Question: Gerdes 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: GERDES PSYCHOLOGICAL SERVICES, INC. Income Statement For the Year Ended December 31, 2015 Revenue: Counseling revenue $225,000 Expenses: Advertising expense $ 1,800 Salaries expense 94,000 Office supplies expense 1,200 Utilities expense 850 Malpractice insurance expense 6,000 Office rent expense 24,000 Continuing education expense 2,650 Depreciation expense: fixtures 4,500 Miscellaneous expense 6,000 Income taxes expense 29,400 170,400 Net income $ 54,600 The firm's statement of retained earnings indicates that a $6,000 cash dividend was declared and paid during 2015. a. Prepare the necessary closing entries on December 31, 2015.
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