Question

Brief Exercise 4-17 The income statement for the Marin Inc. for the month ended July 31 shows Service Revenue $19,780, Salaries and Wages Expense $9,760, Maintenance and Repairs Expense $3,230, and Income Tax Expense $1,400. The statement of retained earnings shows an opening balance for Retained Earnings of $20,180 and Dividends $1,360 Prepare closing journal entries. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 31 (To close revenue account) July 31 (To cose expense accounts) July 31 (To cose net income/(loss) to retained earrings) July 31 (To close dividends to retained earnings)

Answer 1

Date	Account titles and explanation	Debit	Credit
July 31	Service Revenue	$19,780
	Income Summary		$19,780
	(To close revenue account)
July 31	Income Summary	$14,390
	Salaries and Wages Expense		$9,760
	Maintenance and Repairs Expense		$3,230
	Income Tax Expense		$1,400
	(To close expense accounts)
July 31	Income Summary	$5,390
	Retained earning		$5,390
	(To close net income to retained earning)
July 31	Retained earning	$1,360
	Dividend		$1,360
	(To close dividends to retained earnings)
Working:
	Total revenue	$19,780
	Less Total Expense	$14,390
	Net Income transferred to retained earning account	$5,390