Answer:
Cash Accounts receivable
debit credit debit credit
42,000 25,000
c. 140,000 a. 185,000
d. 120,000 <u>c. 140,000</u>
<u>e. 31,400 </u> 70,000
30,600
Service revenue Accounts payable
debit credit debit credit
a. 185,000 8,400
<u>185,000 </u> b. 45,800
0 0 <u>e. 31,400 </u>
22,800
Common stock Retained earnings
debit credit debit credit
<u> 24,000</u> 34,600
24,000 f. 10,000
<u> 19,200</u>
43,800
Operating expenses Salaries expenses
debit credit debit credit
b. 45,800 d. 120,000
<u> 45,800</u> <u> 120,000</u>
0 0 0 0
in order to determine the balance of the retained earnings account at the end of the year, we must first close all the temporary accounts:
Dr Service revenue 185,000
Cr Income summary 185,000
Dr Income summary 165,800
Cr Operating expenses 45,800
Cr Salaries expense 120,000
Dr Income summary 19,200
Cr Retained earnings 19,200
