Posting closing entries directly to T accounts It is December 31 and time for your business to close the books. The following balances appear on the books of Sarah Simon Enterprises:
|
a. |
Dividends, $8,500. |
|
b. |
Service revenue, $23,700. |
|
c. |
Expense account balances: Salary, $6,100; Rent, $4,000; Advertising, $3,300. |
Requirements
1. Set up each T account given and insert its adjusted balance as given (denote as Bal) at December 31. Also set up a T account for Retained earnings, $26,100, and for Income summary.
2. Post the closing entries to the accounts, denoting posted amounts as Clo.
3. Compute the ending balance of Retained earnings.