On December 31, 2016, Ditka Inc. had Retained Earnings of $283,800 before its cl
ID: 2473914 • Letter: O
Question
On December 31, 2016, Ditka Inc. had Retained Earnings of $283,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $184,100 and interest revenue of $89,300. The company used supplies in the amount of $95,900, advertising expenses were $18,000, salaries and wages totaled $20,700, and income tax expense was calculated as $16,900. During the year, the company declared and paid dividends of $7,600.
On December 31, 2016, Ditka Inc. had Retained Earnings of $283,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $184,100 and interest revenue of $89,300. The company used supplies in the amount of $95,900, advertising expenses were $18,000, salaries and wages totaled $20,700, and income tax expense was calculated as $16,900. During the year, the company declared and paid dividends of $7,600.
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.)Explanation / Answer
1. Service revenue $184,100
Interest revenue $89,300
Income summary $273,400
2. Income summary $151,500
Supplies expense $95,900
Advertising expense $18,000
Salaries and wages expense $20,700
Income tax expense 16,900
3. Income Summary $121,900
Retained earnings $121,900
4. Retained earnings $7,600
Dividend $7,600
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