Question
he following financial information was taken from the books of Zone Health Club, a small spa and fitness club: Account Balances as of December 31,
he following financial information was taken from the books of Zone Health Club, a small spa and fitness club: Account Balances as of December 31, Year 2 Accounts receivable $ 12,450 Accounts payable 6,200 Salaries payable 3,150 Cash 36,750 Dividends 2,000 Operating expense 35,300 Prepaid rent 1,200 Rent expense 8,400 Retained Earnings 1/1/Year 2 41,250 Salaries expense 14,500 Service revenue 65,400 Supplies 650 Supplies expense 3,150 Common stock 7,000 Unearned revenue 6,400 Land 15,000 Required A: Prepare the journal entries necessary to close the temporary accounts at December 31, Year 2, for Zone Health Club. B: What is the balance in the Retained Earnings account after the closing entries are posted? A: Record entry to close service revenue. B: Record entry to close expenses. C: Record entry to close dividends.
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