Question
All income and expense accounts were closed at the end of the calendar year for the Patton Company. The Income Summary account has total debits
All income and expense accounts were closed at the end of the calendar year for the Patton Company. The Income Summary account has total debits of $530,000 and total credits of $600,000. As of the same date, Retained Earnings has a balance of $115,000 and the Dividends account has a balance of $48,000.
Instructions
a) Take to the journal the necessary entries to complete the closing of the accounts.
b) Prepare a statement of retained earnings for the year ended December 31, 2015.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
a To complete the closing of the accounts we need to transfer the balances from the temporary income ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
