Answer:
fees earned 116,400 debit
income summary 116,400 credit
--to close revenues account--
Income summary 81,050 debit
Wages Expense 29,000 credit
Rent Expense 43,000 credit
Supplies Expense 7,300 credit
Miscellaneous Expense 1,750 credit
-- to close expenses accounts--
Income summary 5,000 debit
Dividends 5,000 credit
-- to close dividends accounts--
Income summary 30,350 debit
Dividends 30,500 credit
-- to close income summary account--
Explanation:
- on accounting we close the temporary accounts which are:
- revenues
- expenses
- dividends
To do so, we will use an auxiliary account called income summary.
Once we close this we calculate the blaance of income summary using a T-account:
income summary
<u>debit credit </u>
81,050 116,400
5,000
Balance: 30.350
<u />
And close it as well against retained earnings
