Financial statements and closing entries (Learning Objectives 3 & 4)

10–15 min.

The following selected accounts and balances appear on the adjusted trial balance for Waverly, Inc., on July 31, 2014:

Service Revenue ........................................

Rent Expense .............................................

Salaries Expense ........................................

Dividends ...................................................

Common Stock ..........................................

Retained Earnings ......................................

$ 1,800 650 575 300 25,000 4,100 1. What is the net income or net loss?

2. What is the change in Retained Earnings?

3. Journalize the closing entries required.

AppendixLO1