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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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