Question

Journalize Closing Entries Using the information from the Adjusted Trial Balance, journalize the closing entries for the end of the month.

Date SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Accounts and Explanation Debit Credit Account Title Balance Debit Credit 19.800 Accounts Recewable 10.900 Date Office Supplies Accounts and Explanation 200 Debit Credit Prepaid Rent 13.200 Furniture 23.100 Acumulated Depreciation Accounts Payable 2.600 Salanes Payable 600 best Pay 200 Uneaned Re Notes able Date Accounts and Explanation Debit Credit Comment 12.000 Dividends 33.700 Serce Reven 50.000 Depression Expense Rumine Date Accounts and Explanation Debit Credit Interesten 300 Rent tense Slanes Expen 4.600 1,000 Total 113.300

Answer 1

Smart Touch Learning

Closing Journal Entries:

Debit Service Revenue $50,000

Credit Income Summary $50,000

To close service revenue to income summary.

Debit Income Summary $12,400

Credit Depreciation Expense $6,500

Credit Interest Expense $300

Credit Rent Expense $4,600

Credit Salaries Expense $1,000

To close expenses to the income summary.

Debit Income Summary $37,600

Credit Retained Earnings $37,600

To close income summary to retained earnings.

Debit Retained Earnings $37,600

Credit Dividends $33,700

To close dividends to retained earnings.

Step-by-step explanation:

a) Data and Analysis:

SMART TOUCH LEARNING

Adjusted Trial Balance

December 31, 2016

Accounts and Explanation Debit Credit

Account Title Balance Debit Credit

Cash 19,800

Accounts Receivable 10,900

Office Supplies 200

Prepaid Rent 13,200

Furniture 23,100

Accumulated Depreciation 7,900

Accounts Payable 2,600

Salaries Payable 600

Interest Payable 200

Unearned Revenue 5,000

Notes Payable 12,000

Common stock 35,000

Dividends 33,700

Service Revenue 50,000

Depreciation Expense 6,500

Interest Expense 300

Rent Expense 4,600

Salaries Expense 1,000

Total 113,300 113,300

Analysis of Closing Entries:

Service Revenue $50,000 Income Summary $50,000

Income Summary $6,500 Depreciation Expense $6,500

Income Summary $300 Interest Expense $300

Income Summary $4,600 Rent Expense $4,600

Income Summary $1,000 Salaries Expense $1,000

Income Summary $37,600 Retained Earnings $37,600

Retained Earnings $37,600 Dividends $33,700