Preparation of Closing Entries

Hamilton Realty Company, Inc.s income statement accounts at the end of its fiscal year, December 31, follow. Hamilton paid dividends of $5,000 during the year. Prepare the required closing entries.

Account name	Debit	Credit
Commission Revenue		$25,620
Wages Expense	$8,110
Rent Expense	1,200
Supplies Expense	4,260
Insurance Expense	915
Depreciation Expense Office Equipment	1,345
Total Expenses		15,830
Net Income		$ 9,790

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Dec. 31	Cash Commission Revenue Dividends Income Summary Rent Expense Retained Earnings Correct 2	Correct 3
	Cash Commission Revenue Depreciation Expense - Office Equipment Dividends Income Summary Retained Earnings Correct 4	Correct 5
	To close the revenue account
Dec. 31	Cash Commission Revenue Depreciation Expense - Office Equipment Dividends Income Summary Retained Earnings Correct 8	Correct 9	Correct 10
	Cash Commission Revenue Dividends Income Summary Retained Earnings Wages Expense Correct 11	Correct 12	Correct 13
	Accumulated Depreciation - Office Equipment Cash Commission Revenue Dividends Income Summary Rent Expense Correct 14	Correct 15	Correct 16
	Cash Commission Revenue Dividends Income Summary Retained Earnings Supplies Expense Correct 17	Correct 18	Correct 19
	Cash Commission Revenue Dividends Income Summary Insurance Expense Retained Earnings Correct 20	Correct 21	Correct 22
	Accumulated Depreciation - Office Equipment Commission Revenue Depreciation Expense - Office Equipment Income Summary Insurance Expense Retained Earnings Correct 23	Correct 24	Correct 25
	To close the expense accounts
Dec. 31	Cash Commission Revenue Income Summary Insurance Expense Retained Earnings Supplies Expense Correct 28	Correct 29
	Cash Commission Revenue Income Summary Insurance Expense Retained Earnings Wages Expense Correct 30	Correct 31
	To close the Income Summary account
Dec. 31	Commission Revenue Depreciation Expense - Office Equipment Income Summary Retained Earnings Wages Expense Correct 34	Correct 35
	Commission Revenue Dividends Insurance Expense Rent Expense Supplies Expense Correct 36	Correct 37
	To close Dividends account