How would I prepare the closing journal entries for revenues, expenses, and dividends? rkSavedRequired information[The following information applies to the questions displayed below.]The Sky Blue Corporation has the following adjusted trial balance at DecemberDebitCredit$ 1,3903,6003,9004,60020,000CashAccounts ReceivablePrepaid InsuranceNotes Receivable (long-term)EquipmentAccumulated DepreciationAccounts PayableSalaries and Wages PayableIncome Taxes PayableDeferred Revenue$ 5,8007,0201,8004,500920Common Stock4,0001,640Retained EarningsDividends460Sales Revenue56,430Rent Revenue460Salaries and Wages ExpenseDepreciation £xpenseUtilities ExpenseInsurance ExpenseRent ExpenseIncome Tax Expense24,8002,9005,8203,0007,6004,500$82,570Total$82,570Prepare closing journal entries on December 31. (If no entry is required for a transaction/ein the first account field.)Prev3 of 3Ne3010FEB4.MacBook Pro

Name: How would I prepare the closing journal entries for revenues, expenses
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: How would I prepare the closing journal entries for revenues, expenses, and dividends? rkSavedRequired information[The following information applies to the questions displayed below.]The Sky Blue Corporation has the following adjusted trial balance a

Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Business

Accounting

The Sky Blue Corporation has the following adjusted trial balance at Decembe Debit Credit Cash $ 1,390 3,600 3,900 4,600 20,000 Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable $ 5,800 7,020 1,800 4,500 Deferred Revenue 920 Common Stock Retained Earnings Dividends 4,000 1,640 460 Sales Revenue 56,430 Rent Revenue 460 Salaries and Wages Expense Depreciation Expense Utilities Expense Insurance Expense Rent Expense 24,800 2,900 5,820 3,000 7,600 4,500 Income Tax Expense Total $82,570 $82,570 Prepare closing journal entries on December 31. (If no entry is required for a transaction/ in the first account field.)

The Sky Blue Corporation has the following adjusted trial balance at Decembe Debit Credit Cash $ 1,390 3,600 3,900 4,600 20,000 Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable $ 5,800 7,020 1,800 4,500 Deferred Revenue 920 Common Stock Retained Earnings Dividends 4,000 1,640 460 Sales Revenue 56,430 Rent Revenue 460 Salaries and Wages Expense Depreciation Expense Utilities Expense Insurance Expense Rent Expense 24,800 2,900 5,820 3,000 7,600 4,500 Income Tax Expense Total $82,570 $82,570 Prepare closing journal entries on December 31. (If no entry is required for a transaction/ in the first account field.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: How to write-off non recurring items in accounting?

A: Non Recurring Items: Unexpected and unusual Entries in the income statement which are not supposed…

Q: How does a balance sheet get completed? What accounts show on the balance sheet? Is there a…

A: Balance Sheet: A balance sheet is a statement of financial position of the business at a particular…

Q: When fresh start accounting is utilized, how are a company’s assets and its liabilities reported?

A: Except for deferred income taxes, all liabilities at the same time reported as future cash payments…

Q: what accounts are disclosed on a balance sheet

A: Balance sheet means where all assets , liabilities and equity are shown in proper format

Q: What is the primary purpose of the trial balance in accounting? a. Record financial transactions b.…

A: Trial balance means the statement which is prepared after the ledgers has been prepared , to check…

Q: What do the decisions based on accounting information include?

A: Accounting information is the collection and processing of the business transaction to conclude the…

Q: What are the steps to be taken in preparing IFRS financial statements for the first time?

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: What purpose is served by preparing a trial balance in the accounting cycle?

A: Trial Balance: it is the statement of account balance which is prepared from closing balances of the…

Q: How to calculate the retained earnings in a general journal?

A: Retained earnings refers to the amount of money which a business keeps out of its profits for…

Q: what accounts are permanent accounts on the balance sheet

A: Balance sheet(B/S): It is one among the financial statements. It consists of assets, equity and…

Q: How do we get the accounting records ready to prepare financial statements?

A: Explanation - There are three statements of the organization which show different accounting…

Q: Which are the accounting period?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What are the entries to? Journalize and Post the Closing Entries Prepare the Post Closing Trial…

A: Closing entries are the journal entries which are made at the end to close the temporary accounts…

Q: Describe the accrual accounting concepts that appear in financial statements.

A: Accounting is an art of recording, classifying, analyzing and summarizing the financial statement to…

Q: What are scheduled, interim, and past due statements? Please explain.

A: Financial statements are documents that detail a company's operations and cash flows results. . The…

Q: I have questions about the Income Statement. Aside from the obvious what is recorded in the Income…

A: Step1:In the income statement, there are four types of accounts have recorded. These accounts are…

Q: The account that is brought up to date after the closing entries have been journalized and posted is…

A: The closing entries are prepared to close the temporary accounts of the business including revenue,…

Q: The General Ledger Question: What is the Account Number found in the General Ledger, (Ex. No.101,…

A: The General Ledger is a central component of the accounting system in which all financial…

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

Topic Video

Question

How would I prepare the closing journal entries for revenues, expenses, and dividends?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which additional account is used when you close Opening Balance Equity
Which of these accounts IS included in the post-closing trial balance?
What are the steps to be completed in preparing the opening IFRS statement of financial position?
A Company issued $5,00,000/- new capital divided into $.10/- shares at a premium of $4/- per share payable as On Application $1/- per share On Allotment $4/- per share & $.2/- premium On Final Payment $.5/- per share & $.2/- premium Overpayments on application were to be applied towards sum due on allotment. Where no allotment was made money was to be returned in full. The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 were sent letters of regret. All money due on allotment and final call was duly received. Make the necessary entries in the company‟s book.
What is accrual basis of accounting? Please explain and provide an example.
How do i close expense accounts while getting ready to prepare financial statements?
Which of the following dates do NOT require a journal entry? Group of answer choices All dividend dates require a journal entry Date of payment Date of declaration Date of record
On which of the following dates related to the declaration and payment of dividends is a journal entry NOT made? a. date of payment. b. date of record. c. date of declaration.