E3-41B. (Learning Objective 5: Closing the accounts) Prepare the closing entries from the following selected accounts from the records of North Shore Corporation at December 31, 20X8:

How much net income did North Shore earn during 20X8? Prepare a T-account for Retained Earnings to show the December 31, 20X8, balance of Retained Earnings.

Transcribed Image Text:

Cost of services sold.............. $11,600 Service revenue...... $24,800 Accumulated depreciation... 42,800 Depreciation expense 4,700 Selling, general, and Other revenue. 900 administrative expenses.... 6,400 Dividends................................. 800 Retained earnings, Income tax expense. 700 December 31, 20X7. 2,500 Income tax payable... 500