On December 31, 2016, Ditka Inc. had Retained Earnings of $283,800 before its cl

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

31 dec    Retained earning                                                              7600

               Dividend                                                                                          7600

[dividedn declared and paid ]

Date Account title Debitc credit 31 dec Service revenue 184100 Interest revenue 89300 Income statement 273400 31 dec Income statement 151500 Supplies expense 95900 Advettising 18000 salaries and wages 20700 Income tax 16900 [expense account closed] 31 dec Income statement 121900 Retained earning 121900 [net balance in income statment closed ] [273400-151500]

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