The following accounts are taken from the adjusted trial balance on December 31, 2020
of Romo Company. (all accounts with normal balances)
Cash .......................................... ........... 32,000
Accounts Receivable............................... 25,000
Merchandise Inventory .............................. 35,000
Building......................................... .......... 150,000
Accumulated Depreciation—Building ......... 20,000
Accounts Payable ...................................... 12,000
Share Capital-Ordinary............................... 100,000
Retained Earnings...................................... 49,000
Dividends.................................................... 30,000
Sales ......................................................... 325,000
Sales Discounts......................................... 6,000
Sales Returns & Allowances ...................... 8,000
Cost of Goods Sold ................................... 183,000
Operating Expenses ................................... 37,000
The entry to close income summary will include:
|
retained earnings at JD 49,000 in debit side.
retained earnings at JD 91,000 in credit side.
income summary at JD 288,000 in debit side.
income summary at JD 274,000 in credit side