BensonBenson

Auto Repair had the following account balances after adjustments. Assume all accounts had normal balances.

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(Click the icon to view the account balances.)14. Prepare the closing entries for

BensonBenson

at

DecemberDecember

3131.

15. What is the balance of Retained Earnings after closing entries have been recorded? (Use a T-account to determine the balance.)

14. Prepare the closing entries for

BensonBenson

at

DecemberDecember

3131.

(Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

First we will close the Service Revenue account.

Date			Accounts and Explanation	Debit	Credit
Clos. (1)

Next we will close the expense accounts.

Date			Accounts and Explanation	Debit	Credit
Clos. (2)

Now we will close the Income Summary account.

Date			Accounts and Explanation	Debit	Credit
Clos. (3)

Finally close the Dividends account.

Date			Accounts and Explanation	Debit	Credit
Clos. (4)

15. What is the balance of Retained Earnings after closing entries have been recorded? (Use a T-account to determine the balance.) Use "Clos." and the corresponding number as shown in the journal entry as posting

referenceslong dash"Clos.(1)",

"Clos.(2)", etc. The adjusted balance of this account has been entered for you. Post any closing entries to this account and then calculate the post-closing balance ("Bal.") of the account.

Retained Earnings
			15,700	Bal.

Choose from any list or enter any number in the input fields and then continue to the next question.

Cash

$4,000

Common Stock

$20,000

Accounts Receivable

3,200

Retained Earnings, January 1

15,700

Prepaid Rent

1,900

Dividends

2,100

Office Supplies

3,000

Service Revenue

1,600

Equipment

34,800

Depreciation ExpenseEquipment

300

Accumulated DepreciationEquipment

1,600

Salaries Expense

800

Accounts Payable

5,400

Rent Expense

500

Notes Payable (long-term)

7,000

Utilities Expense

600

Supplies Expense

100