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Date Accounts and Explanation Debit Credit Dec. 31 Service Revenue 150,000 Income Summary 150,000 To close Revenue Date Accounts and Explanation Debit Credit Dec. 31

Date Accounts and Explanation Debit Credit
Dec. 31 Service Revenue 150,000

Income Summary

150,000
To close Revenue
Date Accounts and Explanation Debit Credit
Dec. 31 Income Summary 69,000

Retained Earnings

69,000
To close Income Summary
Date Accounts and Explanation Debit Credit
Dec. 31 Retained Earnings 23,000

Dividends

23,000
To close Dividends
Date Accounts and Explanation Debit Credit
Dec. 31 Income Summary 81,000

Depreciation Expense--Furniture

13,000

Interest Expense

18,000

Rent Expense

8,000

Salaries Expense

15,000

Supplies Expense

27,000
To close Expenses

before posting the entry to close out the account.

Date Accounts and Explanation Debit Credit
Dec. 31 Service Revenue 150,000

Income Summary

150,000
To close Revenue
Date Accounts and Explanation Debit Credit
Dec. 31 Income Summary 69,000

Retained Earnings

69,000
To close Income Summary
Date Accounts and Explanation Debit Credit
Dec. 31 Retained Earnings 23,000

Dividends

23,000
To close Dividends
Date Accounts and Explanation Debit Credit
Dec. 31 Income Summary 81,000

Depreciation Expense--Furniture

13,000

Interest Expense

18,000

Rent Expense

8,000

Salaries Expense

15,000

Supplies Expense

27,000
To close Expenses

Depreciation Expense--Furniture

Adj. Bal.

13,000

correct

Bal.DEIRincorrect

Bal.DEIRcorrect

incorrect correct

Bal.DEIRcorrect

Rent Expense

Adj. Bal.

8,000

correct

Bal.DEIRincorrect

Bal.DEIRincorrect

incorrect correct

Bal.DEIRcorrect

Dividends

Adj. Bal.

23,000

correct

Bal.DEIRincorrect

Bal.DEIRincorrect

incorrect correct

Bal.DEIRcorrect

Service Revenue

Bal.DEIRincorrect

correct

150,000

Adj. Bal.

Bal.DEIRcorrect

correct incorrect

Bal.DEIRincorrect

Interest Expense

Adj. Bal.

18,000

correct

Bal.DEIRincorrect

Bal.DEIRincorrect

incorrect correct

Bal.DEIRcorrect

Salaries Expense

Adj. Bal.

15,000

correct

Bal.DEIRincorrect

Bal.DEIRincorrect

incorrect correct

Bal.DEIRcorrect

Retained Earnings

Bal.DEIRincorrect

incorrect

27,000

Adj. Bal.

Bal.DEIRcorrect

correct incorrect

Bal.DEIRincorrect

Bal.DEIRcorrect

correct incorrect

Bal.DEIRincorrect

Income Summary

Bal.DEIRincorrect

incorrect incorrect

Bal.DEIRincorrect

Bal.DEIRcorrect

correct incorrect

Bal.DEIRincorrect

Bal.DEIRincorrect

incorrect correct

Bal.DEIRcorrect

Bal.DEIRcorrect

correct incorrect

Bal.DEIRincorrect

Supplies Expense

Adj. Bal.

27,000

correct

Bal.DEIRcorrect

Bal. DEIR incorrect

incorrect correct

Bal. DEIR correct

A T is drawn. The vertical line divides the account into its left and right sides. The left side of the T-account is called the debit side and the right side is called the credit side. The account name is at the top, above the horizontal line.

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