Question

Seminoles Corporation’s fiscal year-end is December 31, 2021. The following is a partial adjusted trial balance as of December 31.
Accounts Debit Credit
Retained Earnings $ 13,000
Dividends $ 1,300
Service Revenue 33,000
Interest Revenue 4,300
Salaries Expense 13,300
Rent Expense 4,300
Advertising Expense 1,300
Depreciation Expense 9,300
Interest Expense 3,300
Required:
1. Prepare the necessary closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Answer:

Explanation:

The closing entries for the following accounts are presented below:

1. Service Revenue A/c Dr $33,000

  Interest Revenue A/c Dr  $4,300

            To Income Summary $37,300

(Being revenue account closed)

2. Income summary A/c Dr $31,500

               To Salaries Expense $13,300

               To Rent Expense $4,300

               To Advertising Expense $1,300

               To Depreciation Expense $9,300

                To Interest Expense $3,300

(Being expenses accounts are closed)

3. Income summary A/c Dr $5,800         ($37,300 - $31,500)

                   To Retained earning $5,800

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr $1,300

           To Dividend A/c $1,300

(Being dividend account is closed)