Preparing closing entries from T-account Selected accounts for Klein Photography
ID: 2419044 • Letter: P
Question
Preparing closing entries from T-account
Selected accounts for Klein Photography at December 31, 2014 follows:
Retained Earnings
| 47,000
Dividends Service Revenue 17, 000 | |30,000 | 2,000
Salaries Expense Supplies Expense
25,000 | 2,400 | 700|
Depreciation Expense—Furniture Depreciation Expense—Building
800 | 6,200 |
Requirements
Journalize Klein Photography’s closing entries at December 31, 2014.
Determine Klein Photography’s ending retained earnings balance at December 31, 2014.
Explanation / Answer
A. Journal Entries:
1. Cash/Bank A/c Dr.19,000
To Sales Revenue A/c 19,000
2.Salary Expenses A/c Dr. 25,700
To Cash/Bank A/c 25,700
3. Supplies Expenses A/c Dr. 2,400
To Cash A/c 2,400
4. Depreciation A/c Dr 800
To Furniture A/c 800
5. Depreciation A/c Dr 6,200
To Building A/c 6,200.
B. Closing Retained Earnings:
Opening Retained Earnings: 47,000
Add: Sales Revenue: 19,000
66,000
Less: Expenses:
Salaries Expenses: 25,700
Supplies Expense: 2,400
Depreciation - furniture : 800
Depreciation - Building: 6,200
Total Expense: 35,100
Total Earnings (66000 - 35100) = 30,900
Less: Dividends: = 30,000
Retained Earnings at December 31, 2014 = 900