Accounting Question: The Sky Blue Corporation has the following adjusted trial b
ID: 2544037 • Letter: A
Question
Accounting Question:
The Sky Blue Corporation has the following adjusted trial balance at December 31.
Image and details here:http://prntscr.com/isps3z
What you are seeing from the picture is the full closing journal entry for revenues, expenses, and dividends. My question is regarding the revenues/expenses part because that is where i have incorrect errors on. The dividends portion of the closing journal entry is fine, so no help is needed there.
The specific requirements for the revenues/expenses are shown below:
http://prntscr.com/ispsa4
I am not sure if this is a technical error because the numbers should be correct and the debits and credits equal each other.
UPDATE: PLEASE DISREGARD THIS QUESTION. I HAVE SOLVED MY PROBLEM.
Turns out, i included an additional "retained earninngs account" that was not needed. I went off the example from my class lecture, but i think the teacher included 2 "retained earnings" accounts to sort the revenue portion and the expenses portion, but the question was asking me to record the closing entry for rev. AND expenses, so i combine both. The single retained earnings is the difference between the revenues (excluding unearned) and expenses in the general journal
Now that i think about it...the teacher did mention that the book would try to include 2 because they combine rev/exp. into a single closing journal entry but there is actually 3 and i guess the activity assignment we did in class was for that purpose
The Sky Blue Corporation has the following adjusted trial balance at December 31.
Image and details here:http://prntscr.com/isps3z
What you are seeing from the picture is the full closing journal entry for revenues, expenses, and dividends. My question is regarding the revenues/expenses part because that is where i have incorrect errors on. The dividends portion of the closing journal entry is fine, so no help is needed there.
The specific requirements for the revenues/expenses are shown below:
http://prntscr.com/ispsa4
I am not sure if this is a technical error because the numbers should be correct and the debits and credits equal each other.
UPDATE: PLEASE DISREGARD THIS QUESTION. I HAVE SOLVED MY PROBLEM.
Turns out, i included an additional "retained earninngs account" that was not needed. I went off the example from my class lecture, but i think the teacher included 2 "retained earnings" accounts to sort the revenue portion and the expenses portion, but the question was asking me to record the closing entry for rev. AND expenses, so i combine both. The single retained earnings is the difference between the revenues (excluding unearned) and expenses in the general journal
Now that i think about it...the teacher did mention that the book would try to include 2 because they combine rev/exp. into a single closing journal entry but there is actually 3 and i guess the activity assignment we did in class was for that purpose
Explanation / Answer
Answer
Sales revenue
45630
Rent Revenue
340
Total revenues (A)
$45970
Salaries & Wages Expense
22400
Depreciation expense
1700
Utilities Expense
4620
Insurance expense
1800
Rent Expense
6400
Income Tax expense
3300
Total Expenses (B)
$40220
Net Income (A - B)
$5750
Date
General Journal
Debit ($)
Credit ($)
Dec-31
Sales revenue
45630
Rent Revenue
340
Salaries & Wages Expense
22400
Depreciation expense
1700
Utilities Expense
4620
Insurance expense
1800
Rent Expense
6400
Income Tax expense
3300
Retained earnings
5750
(to close revenue and expense accounts)
Dec-31
Retained earnings
340
Dividends
340
( to close dividends account)
Sales revenue
45630
Rent Revenue
340
Total revenues (A)
$45970
Salaries & Wages Expense
22400
Depreciation expense
1700
Utilities Expense
4620
Insurance expense
1800
Rent Expense
6400
Income Tax expense
3300
Total Expenses (B)
$40220
Net Income (A - B)
$5750
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