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 $ 10,000 Dividends $ 1,000 Service Revenue 30,000 Interest Revenue 4,000 Salaries Expense 13,000 Rent Expense 4,000 Advertising Expense 1,000 Depreciation Expense 9,000 Interest Expense 3,000 Required: 1. Prepare the necessary closing entries.

Answer 1

Answer:

Explanation:

The closing entries for the following accounts are shown below:

1. Service Revenue A/c Dr $30,00

   Interest Revenue A/c Dr $4,000

                To Income Summary $34,000

(Being revenue account closed)

2. Income summary A/c Dr $30,000

           To Advertising Expense $1,000

           To Salaries Expense $13,000

           To Depreciation Expense $9,000

           To Rent Expense $4,000

           To Interest Expense $3,000

(Being expenses accounts are closed)  

3. Retained earnings A/c Dr $1,000

                To Dividend A/c $1,000

(Being dividend account is closed)

Since there is no loss or profit as both debit side and the credit side is equal so no entry is passed