Closing entries The data for Amanda’s Tax Service, Inc., for the year ended August 31, 2012, follow:
|
Cost of goods sold |
$62,000 |
Sales revenue |
$ 125,000 |
|
Dividends |
14,000 |
Operating expenses |
44,000 |
|
Interest revenue |
1,800 |
Retained earnings |
24,000 |
Requirements
1. Journalize the required closing entries for the year.
2. What is the balance in Retained earnings after the closing entries are posted?