Question

Instructions Rainbow Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at August 31, the end of the fiscal year, the following balances were taken from the ledger of Rainbow Services: Retained Earnings $922,000 15,600 Dividends 525,600 Fees Earned Wages Expense 483,600 Rent Expense Supplies Expense 71,500 10,960 14,250 Miscellaneous Expense Journalize the four entries required to close the accounts. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Closing Entries
Date	Particulars			Debit	Credit
31-Aug	Fees Earned			$ 525,600.00
	To Income Summary				$ 525,600.00
31-Aug	Income Summary			$ 580,310.00
	To Wages Expense				$ 483,600.00
	To Rent Expense				$   71,500.00
	To Supplies Expense				$   10,960.00
	To Misc. Expense				$   14,250.00
31-Aug	Retained Earnings			$   54,710.00
	To Income Summary				$   54,710.00
31-Aug	Retained Earnings			$   15,600.00
	To Dividends Declared				$   15,600.00