Begin by preparing the closing entries for

South Shore

Enterprises. Record the entry to close out the revenue accounts. (Record debits first, then credits. Exclude explanations from any journal entries.)

Journal Entry
Date		Accounts	Debit	Credit
(1) Dec	31

Next, close out the expense accounts.

Journal Entry
Date		Accounts	Debit	Credit
(2) Dec	31

Now close out the dividend account.

Journal Entry
Date		Accounts	Debit	Credit
(3) Dec	31

How much net income did

South Shore

Enterprises earn during

2021?

Net income for 2021 was

Prepare a T-account for Retained Earnings to show the December 31,

2021,

balance of Retained Earnings. Post the beginning balance and closing entries to Retained Earnings and determine the ending balance.

Retained Earnings

Data Table

	Cost of services sold	$14,900		Service revenue	$31,500
	Accumulated depreciation	40,800		Depreciation expense	4,500
	Selling, general, and			Other revenue	300
	administrative expenses	6,900		Dividends declared	900
	Retained earnings,			Income tax expense	300
	December 31, 2020	2,300		Income tax payable	400