Seduction Interiors has the following balances before closing entries are performed: Retained Earnings ........ $5,000 Fees Earned

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Seduction Interiors has the following balances before closing entries are performed:

Retained Earnings ........ $5,000

Fees Earned .........$25,000

Salaries expense ........$17,000

Operating expenses ......$12,000

Dividends distributed ..... $7,000

The company's bookkeeper prepares the closing entries and becomes concerned.

a. Prepare the closing entries for the company.

b. What caused the bookkeeper concern?

c. Should the company had paid dividends during the year?

d. What can the shareholders do?

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Financial ACCT2

ISBN: 978-1111530761

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

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Question Posted: Aug 26, 2013 07:47 AM

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Seduction Interiors has the following balances before closing entries are performed: Retained Earnings ........ $5,000 Fees Earned

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A Computation of the Closing Entries Particulars Amount Amount Fees Earned AcDr 25000 To Income Summ...View the full answer

Financial ACCT2

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