Qs 3-21 Preparing closing entries from the ledger LO P4 The ledger of Mai Compan

Question

Qs 3-21 Preparing closing entries from the ledger LO P4 The ledger of Mai Company includes the following accounts with normal balances: Common Stock, $9,300; Dividend $950; Services Revenue, $16,000, Wages Expense, $9,900; and Rent Expense, $2,200. Prepare the necessary closing entries from the available information at December 31. Viow transaction list 1 Record the entry to close revenue accounts. 2 Record the entry to close expense accounts. 3 Record the entry to close the income summary account. 4 Record the entry to close the dividends account. Credit Note:journal entry has been entered Record Clear entry View general journal Hints Hint#1 References Worksheet Difficulty: 3 Hard

Explanation / Answer

Closing entry

Date accounts & explanation debit credit Service revenue 16000     Income summary 16000 (TO close revenue account) Income summary 12100     Wages expense 9900     Rent expense 2200 (To close expense account) Income summary 3900     Retained earnings 3900 (To close income summary account) Retained earnings 950     Dividend 950 (To close dividend account)

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