Question

At December 31, Riverbed Corporation reports net income of $454,000. Prepare the entry to close net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Answer:

Dr Profit and loss account $454,000

Cr Retained earnings $454,000

Explanation:

Preparation of the Journal entry to close net income for Riverbed Corporation

Based on the information given we were told that the Corporation reports net income of the amount of $454,000 on December 31 this means the Journal entry to close the account will be recorded as:

Dr Profit and loss account $454,000

Cr Retained earnings $454,000