Question
A,Close Revenue Account: Debit: Service Revenue $54,000 Credit: retained earnings $54,000 Close Expense Accounts: credit: Salaries Expense $20,000 credit: Advertising Expense $13,000 credit: Rent Expense
A,Close Revenue Account:
Debit: Service Revenue $54,000 Credit: retained earnings $54,000
Close Expense Accounts:
credit: Salaries Expense $20,000
credit: Advertising Expense $13,000
credit: Rent Expense $10,000
credit: Utilities Expense $8,000
debit: retained earnings $51,000
Close Dividend Account:
Debit: Retained Earnings $4,000
Credit: Dividends $4,000
B, 54000-51000= 3000
3000= net income
Ending Retained Earnings = Beginning Retained Earnings + Net Income (or Loss) - Dividends Paid
$7000 (beginning retained earnings) + $3,000 (Net Income) - $4,000 (Dividends Paid) = $6000
C
Laker incorporated fiscal
Post closing Trial Balance
December 31 2024
Account Debit Credit
Cash $12000
Supplies 39000
Prepaid rent 30000
a/p $3000
Notes payable 30000
Common stock 40000
Retained earnings 0
Net imcome 3000
Retained earnings 6000
what is wrong?
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Information Technology Auditing
Authors: Hall, J Scott Harr
3rd Edition
1133008046, 978-1439079119
