required: 1. prepare the correct closing entries. assume that all necessary accounts are presented above and…

required: 1. prepare the correct closing entries. assume that all necessary accounts are presented above and that the amounts given are correct. if no entry, leave it blank. december 31 service revenue 180,000 accumulated depreciation 180,000 december 31 accumulated depreciation 150,600 depreciation expense 33,000 income taxes expense 8,200 utilities expense 12,400 wages expense 66,000 supplies expense 31,000 december 31 retained earnings 29,400 dividends declared 29,400 feedback check my work to close accounts, consider their normal balance and adjust the account to zero.

required: 1. prepare the correct closing entries. assume that all necessary accounts are presented above and that the amounts given are correct. if no entry, leave it blank. december 31 service revenue 180,000 accumulated depreciation 180,000 december 31 accumulated depreciation 150,600 depreciation expense 33,000 income taxes expense 8,200 utilities expense 12,400 wages expense 66,000 supplies expense 31,000 december 31 retained earnings 29,400 dividends declared 29,400 feedback check my work to close accounts, consider their normal balance and adjust the account to zero.

Answer

Explanation:

Step1: Close revenue account

Debit Service Revenue for its credit - balance amount of $180,000 and credit Income Summary (assumed, not shown in the given fields but a common closing - entry account) for $180,000.

Step2: Close expense accounts

Debit Income Summary for the total of all expense accounts. Total expenses = Depreciation Expense ($33,000)+Income Taxes Expense ($8,200)+Utilities Expense ($12,400)+Wages Expense ($66,000)+Supplies Expense ($31,000)=$150,600. Credit each expense account for its respective balance.

Step3: Close Income Summary (if there is a net income or loss)

Net income = Service Revenue - Total Expenses = $180,000 - $150,600=$29,400. Debit Income Summary for $29,400 and credit Retained Earnings for $29,400.

Step4: Close Dividends Declared account

Debit Retained Earnings for $29,400 and credit Dividends Declared for $29,400.

December 31:

Account Name Debit ($) Credit ($)
Service Revenue 180,000
Income Summary 180,000
Income Summary 150,600
Depreciation Expense 33,000
Income Taxes Expense 8,200
Utilities Expense 12,400
Wages Expense 66,000
Supplies Expense 31,000
Income Summary 29,400
Retained Earnings 29,400
Retained Earnings 29,400
Dividends Declared 29,400

Answer:

December 31:

Account Name Debit ($) Credit ($)
Service Revenue 180,000
Income Summary 180,000
Income Summary 150,600
Depreciation Expense 33,000
Income Taxes Expense 8,200
Utilities Expense 12,400
Wages Expense 66,000
Supplies Expense 31,000
Income Summary 29,400
Retained Earnings 29,400
Retained Earnings 29,400
Dividends Declared 29,400