Closing Income Summary and Dividends to Retained Earnings

Adriana Company had a net income of $$130,000$ and paid cash dividends of $$26,000$ for $20--$ Overman Company had a net loss of $$25,000$ and distributed a $10\%$ stock dividend with a market value of $$15,000.$

Prepare the journal entries for Adriana as of December $31,20--,$ to close Income Summary and Cash Dividends into Retained Earnings.

Page: $1$

DATE

ACCOUNT TITLE

$20--$

Dec. $31$

$2$

$3$

$4$

$5$ Dec. $31$

$6$

$7$

To close Dividends

DOC. POST.

NO$.$ REF.

CREDIT

To close Income Summary

$3$

$4$

$5$

$6$

$7$

Prepare the journal entries for Overman as of December $31,20--,$ to close Income Summary and Stock Dividends into Retained Earnings.

Page: $1$

DATE

ACCOUNT TITLE

DOC. POST.

No$.$

DEBIT

CREDIT