Question

Seminoles Corporation’s fiscal year-end is December 31, 2018. The following is a partial adjusted trial balance as of December 31.     
  

Accounts	Debit			Credit
Retained Earnings				$	22,000
Dividends	$	2,200
Service Revenue					42,000
Interest Revenue					5,200
Salaries Expense		14,200
Rent Expense		5,200
Advertising Expense		2,200
Depreciation Expense		10,200
Interest Expense		4,200

     
Required:

1. Prepare the necessary closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Calculate the ending balance of Retained Earnings.
  

Answer 1

Closing entries

Date	account and explanation	debit	credit
	Service revenue	42000
	Interest revenue	5200
	Income summary		47200
	(To close revenue)
	Income summary	36000
	Salaries expense		14200
	Rent expense		5200
	Advertising Expense		2200
	Depreciation Expense		10200
	Interest expense		4200
	(To close expense)
	Income summary	11200
	Retained earnings		11200
	(To close income summary)
	Retained earnings	2200
	Dividend		2200
	(To close dividend)

Ending balance of retained earnings = 22000+11200-2200 = $31000