The following financial information was taken from the books of Zone Health Club, a small spa and fitness club. Account Balances as of December 31, Year 2 Accounts Receivable Accounts Payable Salaries Payable Cash Dividends Operating Expenses Prepaid Rent Rent Expense Retained Earnings, Beginning Salaries Expense Service Revenue Supplies Supplies Expense Common Stock Unearned Revenue Land $28,000 7,030 11,300 45,000 5,200 2,690 2,900 7,300 18,200 30,500 77,400 520 2,250 17,900 7,030 14,500 Required a. Prepare the journal entries necessary to close the temporary accounts at December 31, Year 2, for Zone Health Club. b. What is the balance in the Retained Earnings account after the closing entries are posted?

The following financial information was taken from the books of Zone Health Club, a small spa and fitness club. Account Balances as of December 31, Year 2 Accounts Receivable Accounts Payable Salaries Payable Cash Dividends Operating Expenses Prepaid Rent Rent Expense Retained Earnings, Beginning Salaries Expense Service Revenue Supplies Supplies Expense Common Stock Unearned Revenue Land $28,000 7,030 11,300 45,000 5,200 2,690 2,900 7,300 18,200 30,500 77,400 520 2,250 17,900 7,030 14,500 Required a. Prepare the journal entries necessary to close the temporary accounts at December 31, Year 2, for Zone Health Club. b. What is the balance in the Retained Earnings account after the closing entries are posted?

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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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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You will get up vote for sure.

The following financial information was taken from the books of Zone Health Club, a small spa and fitness club.
Account Balances as of December 31, Year 2
Accounts Receivable.
Accounts Payable
Salaries Payable
Cash
Dividends
Operating Expenses
Prepaid Rent
Rent Expense
Retained Earnings, Beginning
Salaries Expense
Service Revenue
Supplies
Supplies Expense
Common Stock
Unearned Revenue
Land
Required
a. Prepare the journal entries necessary to close the temporary accounts at December 31, Year 2, for Zone Health Club.
b. What is the balance in the Retained Earnings account after the closing entries are posted?
Required A
Complete this question by entering your answers in the tabs below.
Required B
View transaction list
Prepare the journal entries necessary to close the temporary accounts at December 31, Year 2, for Zone Health Club. (If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
<
A B C
Record the closing entry for revenues.
Note: Enter debits before credits.
Event
1
$28,000
7,030
11,300
45,000
5,200
2,690
2,900
7,300
18,200
30,500
77,400
Record entry
520
2,250
17,900
7,030
14,500
General Journal
Clear entry
Debit
Credit
View general journal
>

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