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Prepare the closing journal entries. Assume the company uses the income summary account (do not post) SPORTS RUS Retained Earnings Statement For Month Ended June
Prepare the closing journal entries. Assume the company uses the income summary account (do not post)
SPORTS RUS Retained Earnings Statement For Month Ended June 30.2019 Beginning Retained Earnings, $ 35,500 Add: Net Income $ 7.850 Subtotal Less: Dividends declared $ 2.500 Ending Retained Earnings $ 40,850 $ 43,350 SPORTS RUS Income Statement For Month Ended June 30.2019 Revenues: Service Revenue $ 24.250 Sales Revenue $ 13.500 Total Revenues $ 37,750 Operating Expenses: Cost of goods sold $ 9,200 Rent Expense $ 2.900 Telephone Expense $ 650 Salaries Expense $ 10.050 Office Supplies Expense $ 3,500 Interest Expense $ 600 Insurance Expense $ 200 Depreciation Expense $ 2,800 Total Expenses $ 29,900 Net Income S 7,850 $ 55.000 $ 12.500 S 11.450 $ S 3.200 $ 11,050 $ 106,000 -$ 25,800 $ 173,400 SPORTS RUS Balance sheet As at June 30.2019 Assets: Cash Accounts Receivable Prepaid Insurance Office Supplies Merchandise Inventory Property.plant and Equipment Less:Accumulated Depreciation Total Assets Liabilities: Accounts Payable Unearned Revenue Salaries Payable Interest Payable Bank Loan Total Liabilities Stockholders Equity: Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity S 32.750 $ 4.200 $ 4,300 $ 300 $ 21,000 $ 62,550 S $ 70,000 $ 40.850 $ 110,850 $ 173,400 g) Closing Entries Assuming the company closes accounts directly to the Income Summary Account, prepare the closing Date Account Title & Explanation PR Debit Credit Jun 30 Close the Revenue Accounts Jun 30 Close the expense accounts Jun 30 Close income summary Jun 30 Close dividends to retained earnings 16 points
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