Exercise 13-22B Recording events in the general journal, posting to T-accounts, and preparing closing entries At the beginning of Year 2, Event Services Co. had the following normal balances in its accounts: The following events apply to Event Services Co. for Year 2: 1. Provided $130,000 of services on account. 2. Incurred $6,200 of operating expenses on account. 3. Collected $112,000 of accounts receivable. 4. Paid $72,000 cash for salaries expense. 5. Paid $30,000 cash as a partial payment on accounts payable. 6. Paid a $16,000 cash dividend to the stockholders. Required a. Record these events in a general journal. b. Open T-accounts and post the beginning balances and the preceding transactions to the appropriate accounts. Determine the balance of each account. c. Show the beginning balances and the events in a horizontal statements model such as the following one: d. Record the closing entries in the general journal and post them to the T-accounts. What is the amount of net income for the year? e. What is the amount of change in retained earnings for the year? Is the change in retained earnings different from the amount of net income? If so, why? f. Prepare a post-closing trial balance. a. Event Services Co. General Journal, Year 2 b. &d. Event Services Co. - T-Accounts, Year 2 Service Revenue \begin{tabular}{l|l} \multicolumn{2}{c}{ Operating Expenses } \\ \hline Debit & Credit \\ \hline & \\ \hline & \\ \hline Bal. 0 & \\ \hline \end{tabular} EXERCISE 13-22B (continued on next page) NC = Net Change in Cash e. Change in retained earnings =$35,800 (NI $51,800 - Div. $16,000 ) The change in retained earnings is different from the amount of net income by $16,000 because retained earnings is also affected by dividends to the shareholders. The distribution reduces retained earnings but does not decrease net income