Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(2 points) A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $10,000. During the year, Sales Revenue

image text in transcribed

(2 points) A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $10,000. During the year, Sales Revenue amounted to $150,000, Cost of Goods Sold was $100,000, and all other expenses totaled $20,000. The company declared and paid $10,000 as dividends. Required: Prepare closing journal entries to close out Revenue, Expenses, Income Summary and Dividend? Calculate the ending balance of Retained Earnings, show your calculation?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems The Crossroads of Accounting & IT

Authors: Donna Kay, Ali Ovlia

2nd Edition

132991322, 978-0132991322

More Books

Students also viewed these Accounting questions