Question

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At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:

Account	Balance
Cash	$	31,800
Accounts receivable		20,900
Accounts payable		14,900
Common stock		23,900
Retained earnings		13,900

The following events apply to Oak Consulting for Year 2:

1. Provided $65,500 of services on account.
2. Incurred $3,500 of operating expenses on account.
3. Collected $46,800 of accounts receivable.
4. Paid $39,100 cash for salaries expense.
5. Paid $16,560 cash as a partial payment on accounts payable.
6. Paid a $9,600 cash dividend to the stockholders.

View transaction list Journal entry worksheet < А. B с > Record the closure of service revenue. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal

Answer 1

Credit $ Journal entries : Date Accounts Title & Explanation Year 2 Accounts Receivable To Service Revenue (Entry for service revenue provided on account) Debit $ 65,500 65,500 Year 2 3,500 Operating expenses To Accounts Payable (Entry for operating expenses incurred on account) 3,500 Year 2 46,800 Cash To Accounts Receivable (Entry for collection of accounts receivable) 46,800 Year 2 39,100 Salaries expense To Cash (Entry for salaries expense paid) 39,100 Year 2 16,560 Accounts Payable To Cash (Entry for partial payment of accounts receivable) 16,560 Year 2 9,600 Dividends To Cash (Entry for Dividend payment) 9,600 Credit $ Closing Journal entries :- Date Accounts Title & Explanation Year 2 Service Revenue To Income Summary (Entry for closure of revenue accounts) Debit $ 65,500 65,500 Year 2 42,600 Income Summary To Operating expense To Salaries expense (Entry closure of expenses accounts) 3,500 39,100 Year 2 22,900 Income Summary To Retained earnings (Entry closure of Net Income) 22,900 Year 2 9,600 Retained earnings To Dividends (Entry closure of Dividends) 9,600