Seminoles Corporation’s fiscal year-end is December 31, 2021. The following is a partial adjusted trial balance as of December 31.Accounts Debit CreditRetained Earnings $30,000Dividends $ 3,000Service Revenue 50,000Interest Revenue 6,000Salaries Expense 15,000Rent Expense 6,000Advertising Expense 3,000Depreciation Expense 11,000Interest Expense 5,000Required:1. Prepare the necessary closing entries. 2. Calculate the ending balance of Retained Earnings.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Seminoles Corporation’s fiscal year-end is December 31, 2021. The following is a partial adjusted
Accounts Debit Credit
Dividends $ 3,000
Service Revenue 50,000
Interest Revenue 6,000
Salaries Expense 15,000
Rent Expense 6,000
Advertising Expense 3,000
Depreciation Expense 11,000
Interest Expense 5,000
Required:
1. Prepare the necessary closing entries.
2. Calculate the ending balance of Retained Earnings.
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