Question

The year-end adjusted trial balance of Aggies Corporation included the following account balances: Retained Earnings, $219,000; Service Revenue, $845,000; Salaries Expense, $379,000; Rent Expense, $139,000; Interest Expense, $74,000; and Dividends, $49,000.

Record the necessary closing entries.

Answer 1

Journal Entry and their narrations is shown below:-

Step-by-step explanation:

The Journal entry is shown below:-

1. Service Revenue Dr, $845,000

Retained Earnings $845,000

(Being close the revenue accounts is recorded)

2. Retained Earnings Dr, $592,000

($139,000 + $379,000 + 74,000 )

To Rent Expense $139,000

To Salaries Expense $379,000

To Interest Expense $74,000

(Being close the expense accounts is recorded)

3. Retained Earnings Dr, $49,000

To Dividends $49,000

(Being dividends is recorded)