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Preparing Closing Journal Entries The adjusted trial balance at June 30, 2013 for Quantas Airlines includes the following selected accounts. (AUD millions) Debits Credits Total

Preparing Closing Journal Entries

The adjusted trial balance at June 30, 2013 for Quantas Airlines includes the following selected accounts.

(AUD millions)

Debits

Credits

Total passenger and freight revenue

15,902

Manpower and staff related

3,825

Fuel

4,154

Aircraft operating variable

3,066

Depreciation and amotisation

1,450

Other expenses

3,203

Finance costs

187

Income tax expense

11

Retained earnings

1,165

Assume that the company has not yet closed any accounts to retained earnings. Prepare journal entries to close the temporary accounts above. Set up the needed T-accounts and post the closing entries. After these entries are posted, what is the balance of the Retained Earnings account? Thanks

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