239.A company's December 31 work sheet appears below with summary amounts in the Income Statement and Balance Sheet columns. Prepare the four necessary closing entries.
Income Statement
Balance Sheet
Debit
Credit
Debit
Credit
Assets12,000
Liabilities3,000
Common stock1,000
Retained earnings6,500
Dividends1,500
Revenue19,500
Salaries expense11,250
Other operating expenses5,250
Totals16,50019,50013,50010,500
Net income3,0003,000
Totals19,50019,50013,50013,500
240.The adjusted trial balance of Carson's Internet Services, Inc. follows:
CARSON’S INTERNET SERVICES, Inc.
Adjusted Trial Balance
December 31
Cash$1,170
Supplies1,930
Prepaid insurance600
Computer equipment20,600
Accumulated depreciation—Computer equipment$5,400
Accounts payable325
Common stock1,000
Retained earnings12,925
Dividends4,800
Services revenue21,720
Salaries expense6,920
Depreciation expense2,000
Rent expense1,200
Supplies expense800
Utilities expense950
Insurance expense400
Totals$41,370$41,370
(a) Prepare the four closing entries necessary.
(b) What is the balance of the Retained Earnings account after the closing entries are posted?
241.Following are selected accounts and their balances for a company after the adjustments made on May 31, the end of its fiscal year. (All accounts have normal balances.)
Retained earnings$30,000
Dividends6,000
Fees earned20,000
Salaries expense7,000
Insurance expense350
Utilities expense75
Supplies expense500
Supplies payable400
Salaries payable300
Depreciation expense425
Prepare all the necessary closing entries for this company.