Question

The ledger of Mai Company includes the following accounts with normal balances: Common Stock, $9,000; Dividends, $800; Services Revenue, $13,000; Wages Expense, $8,400; and Rent Expense, $1,600.

Prepare the necessary closing entries from the available information at December 31.

Answer 1

Step-by-step explanation:

The closing entries is purposely to transfer account balances to permanents books of account , with all income statements banalces transferred to retained earnings.

Common stock - $9000

Dividends - $800

Service revenue - $13,000

Wages Expenses - $ $8,400

Rent Expenses - $1,600

Closing Entries

Particulars Dr Cr

Income Summary $10,000

Wages Expenses $8,400

Rent Expenses $1,600

Service Revenue $13,000

Income Summary $13,000

Income Summary $3,000

(13000-10000)

Retained Earnings $3,000

Retained Earnings $800

Dividends $800