Please answer the following questions ch3q4 Closing Entries The adjusted trial b
ID: 2521377 • Letter: P
Question
Please answer the following questions
ch3q4
Closing Entries The adjusted trial balance prepared as of December 31, for Phyllis Howell&Company;, Consultant, contains the following revenue and expense accounts: Debit Credit Service Fees Earned Rent Expense Salaries Expense Supplies Expense Depreciation Expense Retained Earnings Dividends $80,500 $20,800 52,000 5,600 11,300 72,000 10,000 Prepare journal entries to close the accounts directly to Retained Earnings. After these entries are posted, what is the balance in the Retained Earnings account?Explanation / Answer
Date Description Dr Cr 31-Dec Service revenue Earned $80,500 Retained Earnings $80,500 (service revenue closed) 31-Dec Retained Earnings $89,700 Rent expenses $20,800 Salaries expenses 52000 Supplies expenses 5600 Depreciation expenses 11300 (to close expenses account) 31-Dec Retained Earnings $10,000 Dividends $10,000 (to close dividend ) Ending balance of Retained Earnings $52,800 72000+80500-89700-10000 If any doubt please comment