Question

Selected accounts for Kenmore Photography December 31, 2018, follow: 

Requirements

 1. Joumalize Kenmore Photography's closing entries at December 31, 2018

 2. Determine Kenmore Photography's ending Retained Earnings balance at December 31, 2018 

Answer 1

1	Date	Accounts and Explanation	Debit	Credit
	Dec 31	Service Revenue	41,000
		Income Summary		41,000
		(To record close of revenue account)
	Dec 31	Income Summary	43,000
		Salaries Expense		32,200
		Supplies Expense		2,900
		Depreciation Expense - Building		6,900
		Depreciation Expense - Furniture		1,000
		(To record close of expenses account)
	Dec 31	Retained Earnings	2,000
		Income Summary		2,000
	Dec 31	Retained Earnings	19,000
		Dividends		19,000
2	Retained Earnings balance at December 31, 2018		23,000
		(44,000 - 2,000 - 19,000)