Question

Summit Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at May 31, the end of the fiscal year, the following balances were taken from the ledger of Summit Services: Fees Earned $1,150,000 Dividends 5,000 Rent Expense 200,000 Retained Earnings 450,000 Supplies Expense 19,300 Wages Expense 915,000 Miscellaneous Expense 31,900
Journalize the four entries required to close the accounts.

Answer 1

Answer: See explanation

Explanation:

The journal entry will be prepared thus:

May 31:

Dr Fees earned $1,150,000

Dr Retained earnings $16,200

Cr Rent Expense $200,000

Cr Supplies expense $19,300

Cr Wages expenses $915,000

Cr Miscellaneous expense $31,900

May 31:

Dr Retained earnings $5000

Cr Dividend $5000