On December 31, 2016, Ditka Inc. had Retained Earnings of $268,800 before its cl
ID: 2534667 • Letter: O
Question
On December 31, 2016, Ditka Inc. had Retained Earnings of $268,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $169,100 and interest revenue of $81,800. The company used supplies in the amount of $88,400, advertising expenses were $16,500, salaries and wages totaled $18,450, and income tax expense was calculated as $13,900. During the year, the company declared and paid dividends of $6,100. Required ber 31, 2016. (If no en Entry Required" in the first account field.) View transaction list 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 journalExplanation / Answer
SOLUTION:
Solution:
Particulars
Debit
Credit
Service Revenue
169,100
Interest Revenue
81,800
Income Summary
250900
Income Summary
137250
Supplies Expense
88,400
Advertising Expense
16,500
Salaries & Wages Expense
18,450
Income Tax Expenses
13,900
Income Summary
113650
Retained Earning
113650
Retained Earning
6100
Dividend
6100
Retained Earning
268800
Beginning Bal
12/31/16
6100
113650
12/31/16
376350
End Bal
Particulars
Debit
Credit
Service Revenue
169,100
Interest Revenue
81,800
Income Summary
250900
Income Summary
137250
Supplies Expense
88,400
Advertising Expense
16,500
Salaries & Wages Expense
18,450
Income Tax Expenses
13,900
Income Summary
113650
Retained Earning
113650
Retained Earning
6100
Dividend
6100
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