Question

Summit Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at May 31, the end of the fiscal year, the following balances were taken from the ledger of Summit Services: Fees Earned $1,150,000 Dividends 5,000 Rent Expense 200,000 Retained Earnings 450,000 Supplies Expense 19,300 Wages Expense 915,000 Miscellaneous Expense 31,900 Journalize the closing entries required to close the accounts. If an amount box does not require an entry, leave it blank.

Answer 1

Dr Fees earned $1,150,000

Dr Retained earnings - Bal. Fig. $16,200

(1,166,200-1150000)

Cr Rent expense 200,000

Cr Supplies expense 19,300

Cr Wages expense 915,000

Cr Miscellaneous expense 31,900

May-31

Dr Retained Earnings 5,000

Cr Dividends 5,000

Step-by-step explanation:

Preparation of the closing entries required to close the accounts.

May-31

Dr Fees earned $1,150,000

Dr Retained earnings - Bal. Fig. $16,200

(1,166,200-1150000)

Cr Rent expense 200,000

Cr Supplies expense 19,300

Cr Wages expense 915,000

Cr Miscellaneous expense 31,900

(To close the Expenses )

May-31

Dr Retained Earnings 5,000

Cr Dividends 5,000

(To close the dividends )