Question

Sheridan Company shows the following balances in selected accounts of its adjusted trial balance.

Supplies $24,320
Supplies Expense 4,560
Accounts Receivable 9,120
Dividends 16,720
Retained Earnings 53,200
Service Revenue 82,080
Salaries and Wages Expense 30,400
Utilities Expense 6,080
Rent Expense 13,680

Prepare the remaining closing entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

To prepare the remaining closing entries, close the temporary accounts by transferring the balances to the Retained Earnings account. The closing entries for the given accounts would be...

Step-by-step explanation:

To prepare the remaining closing entries at December 31, we need to close the temporary accounts. The temporary accounts include the revenue and expense accounts. The closing entries transfer the balances of these accounts to the retained earnings account.

In this case, we need to close the following accounts:

• Supplies Expense
• Dividends
• Service Revenue
• Salaries and Wages Expense
• Utilities Expense
• Rent Expense

The closing entries would be as follows:

1. Debit Supplies Expenses and credit Retained Earnings for $4,560
2. Debit Dividends and credit Retained Earnings for $16,720
3. Debit Service Revenue and credit Retained Earnings for $82,080
4. Debit Salaries and Wages Expense and credit Retained Earnings for $30,400
5. Debit Utility Expense and credit Retained Earnings for $6,080
6. Debit Rent Expense and credit Retained Earnings for $13,680

After posting these closing entries, the temporary accounts will have a zero balance, and the balances will be transferred to the Retained Earnings account.