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

Answer:

Journal Entry and their narrations is shown below:-

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)