On December 31, 2016, Ditka Inc. had Retained Earnings of $286,800 before its cl

Question

On December 31, 2016, Ditka Inc. had Retained Earnings of $286,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $187,100 and interest revenue of $90,800. The company used supplies in the amount of $97,400, advertising expenses were $18,300, salaries and wages totaled $21,150, and income tax expense was calculated as $17,500. During the year, the company declared and paid dividends of $7,900 Required: a. Prepare the closing entries dated December 31, 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 2 Record the entry for closing revenue and expense account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

Transaction General journal Debit Credit 1) Service revenue 187,100 interest revenue 90,800 income summary 277,900 ( to close revenue account) income summary 154,350 Supplies 97,400 Advertising expense 18,300 Salaries and wages 21,150 income tax expense 17,500 (to close expense account) income summary 123,550 Retained earnings 123,550 (to close income summary account) Retained earnings accounts Beg bal 286,800 Dividends 7,900 123,550 income summary end bala 402,450

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