Answer:
Service Revenue 50,000 debit
Income summary 50,000 credit
--to close revenues accounts--
Income summary 34,000 debit
Salaries and Wages Expense 27,000 credit
Supplies Expense 7,000 credit
--to close expenses accounts--
Income summary 2,000 debit
Dividends 2,000 credit
--to close dividends account--
Income summary 14,000 debit
Retained Earnings 14,000 credit
Explanation:
To close the temporary accounts which are, revenues, expenses and dividends we will use an auxiliary account called Income Summary
Then, once all are closed we transfer their balance into retained earnings:
Income summary
DEBIT CREDIT
50,000
34,000
<u> 2,000 </u>
Balance 14,000
