Question
Randy's Services provides general home repairs to customers. The company's fiscal year-end is December 31. The December 31, 2021, adjusted trial balance appears below. Adjusted
- Randy's Services provides general home repairs to customers. The company's fiscal year-end is December 31. The December 31, 2021, adjusted trial balance appears below.
Adjusted Trial Balance
Account Title | Debit | Credit |
Cash | $18,100 |
|
Accounts Receivable | 16,200 |
|
Supplies | 3,000 |
|
Prepaid Insurance | 3,750 |
|
Equipment | 95,000 |
|
Accumulated Depreciation |
| $40,800 |
Accounts Payable |
| 10,500 |
Salaries Payable |
| 4,200 |
Utilities Payable |
| 1,900 |
Interest Payable |
| 2,000 |
Notes Payable |
| 40,000 |
Common Stock |
| 24,000 |
Retained Earnings |
| 10,500 |
Dividends | 2,500 |
|
Service Revenue |
| 224,900 |
Salaries Expense | 162,700 |
|
Depreciation Expense | 13,600 |
|
Insurance Expense | 11,250 |
|
Supplies Expense | 17,400 |
|
Utilities Expense | 13,300 |
|
Interest Expense | 2,000 |
|
Total | $358,800 | $358,800 |
Required:
Complete the following steps:
- Record closing entries.
- Calculate account balances of retained earnings after closing entries are made.
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