On December 31, 2016, Ditka Inc. had Retained Earnings of $269,800 before its cl

Question

On December 31, 2016, Ditka Inc. had Retained Earnings of $269,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $170,100 and interest revenue of $82,300. The company used supplies in the amount of $88,900, advertising expenses were $16,600, salaries and wages totaled $18,600, and income tax expense was calculated as $14,100. During the year, the company declared and paid dividends of $6,200. Record the entry for closing revenue and expense account. Record the entry for closing dividend account.

Explanation / Answer

S.No. Date Details Dr. Cr. 1 31-Dec Service revenue A/c       Dr. $ 170,100.00 Interest revenue A/c      Dr. $    82,300.00        To Income summary $ 252,400.00 2 31-Dec Income summary A/c    Dr. $ 138,200.00             To Supplies Expense $    88,900.00             To Income Tax Expense $    14,100.00             To Salaries and Wages $    18,600.00             To Advertising Expense $    16,600.00 3 31-Dec Income summary A/c    Dr. $ 114,200.00               To Retained Earning $ 114,200.00 4 31-Dec Retained Earning A/c Dr. $      6,200.00                To Dividend $      6,200.00

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