The following financial information was taken from the books of Zone Health Club
ID: 2332538 • Letter: T
Question
The following financial information was taken from the books of Zone Health Club, a small spa and fitness club:
Prepare the journal entries necessary to close the temporary accounts at December 31, 2016, for Zone Health Club. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
What is the balance in the Retained Earnings account after the closing entries are posted?
The following financial information was taken from the books of Zone Health Club, a small spa and fitness club:
Explanation / Answer
Ans. (a)
CLOSING ENTRY
Ans. (b)
S.NO. DISCRIPTION DEBIT CREDIT 1. Service Revenue 80,500 To Retained Earnings 80,500 2. Retained Earnings 44,580 To Operating Expenses 2,880 To Rent Expenses 7,000 To Salaries Expenses 32,600 To Supplies Expenses 2,100 3. Retained Earnings 4,900 To Dividends 4,900