Question

Closing Entries

After the accounts have been adjusted at November 30, the end of the fiscal year, the following balances were taken from the ledger of Diamond Landscaping Co.:

Retained Earnings	$2,550,000
Dividends	25,000
Fees Earned	1,150,000
Wages Expense	613,750
Rent Expense	120,000
Supplies Expense	9,150
Miscellaneous Expense	11,000

Journalize the two entries required to close the accounts. If an amount box does not require an entry, leave it blank.

Closing Entries After the accounts have been adjusted at November 30, the end of the fiscal year, the following balances were taken from the ledger of Diamond Landscaping Co. Retained Earnings Dividends Fees Earned Wages Expense Rent Expense Supplies Expense Miscellaneous Expense $2,550,000 25,000 1,150,000 613,750 120,000 9,150 11,000 Journalize the two entries required to close the accounts. If an amount box does not require an entry, leave it blank Nov. Fees Earned 1,150,000 V Wages Expense Rent Expense Supplies Expense Miscellaneous Expense 613,750 120,000 9,150 V 11,000 Retained Earnings 396.1001 x

Answer 1

Answer

--The 2 closing entries would be

Date	Accounts title	Debit	Credit
Nov-30	Fees Earned	$1,150,000
	Wages Expenses		$613,750
	Rent Expenses		$120,000
	Supplies expense		$9,150
	Miscellaneous expenses		$11,000
	Retained earnings [1150000-613750-120000-9150-11000]		$396,100
	(to close revenues and expenses)
Nov-30	Retained Earnings	$25,000
	Dividends		$25,000
	(to close Dividend)