Answer:
The journal entries are as follows:
(i) On December 31,
Service revenue A/c Dr. $25,000
To income summary A/c $25,000
(To record the service revenue)
(ii) On December 31,
Income summary A/c Dr. $18,400
To wages expense $14,400
To rent expense $4,000
(To record the rent and wages expense)
(iii) On December 31,
Income summary A/c($25,000 - $18,400) Dr. $6,600
To Retained earnings $6,600
(To record the Retained earnings)
(iv) On December 31,
Retained earnings A/c Dr. $1,400
To dividend A/c $1,400
(To record the dividend)
