Question

After the accounts have been adjusted at November 30, the end of the fiscal year, the following balances were taken from the ledger of Diamond Landscaping Co.: Retained Earnings $2,550,000 Dividends 25,000 Fees Earned 1,150,000 Wages Expense 613,750 Rent Expense 120,000 Supplies Expense 9,150 Miscellaneous Expense 11,000 Journalize the two entries required to close the accounts.

Answer 1

Answer:

Nov-30

Dr Fees Earned $1,150,000

Cr Wages Expenses $613,750

Cr Rent Expenses $120,000

Cr Supplies expense $9,150

Cr Miscellaneous expenses $11,000

Cr Retained earnings $396,100

Nov-30

Dr Retained Earnings $25,000

Cr Dividends $25,000

Explanation:

Preparation of the two journal entries required to close the accounts.

Nov-30

Dr Fees Earned $1,150,000

Cr Wages Expenses $613,750

Cr Rent Expenses $120,000

Cr Supplies expense $9,150

Cr Miscellaneous expenses $11,000

Cr Retained earnings $396,100

[1150000-613750-120000-9150-11000]

(To close revenues and expenses)

Nov-30

Dr Retained Earnings $25,000

Cr Dividends $25,000

(To close Dividend)