The ledger of Martinez Company contains the following balances: Retained Earnings $31,00O, Dividends $3,000, Service Revenue $49,000, Salaries and Wages Expense $27,500, and Supplies Expense $6,500. The closing entries are as follows: (1) Close revenue accounts. (2) Close expense accounts. (3) Close net income/(loss). (4) Close dividends. Enter the balances in T-accounts, and post the closing entries. Salaries and Wages Expense Supplies Expense Service Revenue Dividends Income Summary Retained Earnings >
The ledger of Martinez Company contains the following balances: Retained Earnings $31,00O, Dividends $3,000, Service Revenue $49,000, Salaries and Wages Expense $27,500, and Supplies Expense $6,500. The closing entries are as follows: (1) Close revenue accounts. (2) Close expense accounts. (3) Close net income/(loss). (4) Close dividends. Enter the balances in T-accounts, and post the closing entries. Salaries and Wages Expense Supplies Expense Service Revenue Dividends Income Summary Retained Earnings >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![The ledger of Martinez Company contains the following balances: Retained Earnings $31,00O, Dividends $3,000, Service Revenue
$49,000, Salaries and Wages Expense $27,500, and Supplies Expense $6,500.
The closing entries are as follows:
(1)
Close revenue accounts.
(2)
Close expense accounts.
(3)
Close net income/(loss).
(4)
Close dividends.
Enter the balances in T-accounts, and post the closing entries.
Salaries and Wages Expense
Supplies Expense
Service Revenue
Dividends
Income Summary
Retained Earnings
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d32c7d5-385e-4be2-86c3-eb98cb0d726e%2Fc8d94fab-4f74-468c-902e-afbddfcc2b5e%2F9q9ftcj_processed.png&w=3840&q=75)
Transcribed Image Text:The ledger of Martinez Company contains the following balances: Retained Earnings $31,00O, Dividends $3,000, Service Revenue
$49,000, Salaries and Wages Expense $27,500, and Supplies Expense $6,500.
The closing entries are as follows:
(1)
Close revenue accounts.
(2)
Close expense accounts.
(3)
Close net income/(loss).
(4)
Close dividends.
Enter the balances in T-accounts, and post the closing entries.
Salaries and Wages Expense
Supplies Expense
Service Revenue
Dividends
Income Summary
Retained Earnings
>
Expert Solution
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Step 1
Closing entries are used to transfer the balance from a temporary account to a permanent account. We can say that closing entries are used to reset the balance of the temporary account.
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