Help me calculate ending balance of retained earnings. PLEASE CHECK MY JOURNAL E

Question

Help me calculate ending balance of retained earnings. PLEASE CHECK MY JOURNAL ENTRIES before working on retained earnings IF THEY ARE CORRECT OR NOT. Please show all T-Accounts and posting. Show clear calculations of retained earnings. 10. The following trial balance was taken 2014 from the books of Fisk Corporation on December 31, Account Debit Credit $ 8,000 Cash Accounts Receivable 40,000 10,000 Notes Receivable Allowance for Doubtful Accounts $ 1,800 44,000 4,800 110,000 Inventory Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Salaries and Wages Expense 15,000 9,800 44,000 55,000 280,000 126,000 50,000 Rent Expense Totals $405600 S405.600 At year end, the following items have not yet been recorded. a. Insurance expired during the year, $2,000. Estimated bad debts, 1% of sales revenue. Depreciation on equipment, 500 per year on original cost. c.

Explanation / Answer

journal entries particulars Debit Credit insurance expenses Dr 2000 prepaid insurance 2000 Bad debts expenses Dr(280000*1%) 2800 allowance for doubtfull a/c 2800 Depreciation exp Dr(110000*5%) 5500 accumulated Depreciation 5500 interest receviable (10000*5%) 500 interest income 500 Rent paid in advance Dr 5400 Rent expenses 5400 salaries exp 5800 salary payable 5800 closing Entries Particulars Debit Credit sales 280000 interest income 500 income summary 280500 cost of goods sold 126000 insurance expenses 2000 bad debt expense 2800 depreciation exp 5500 rent expense(12800-5400) 7400 salaries expenses(50000+5800) 55800 income summary 199500 income summary 81000 Retained Earning 81000

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