Question
The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 45,500 Accounts Receivable 29,700 Land
The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances:
Accounts | Debits | Credits | |||||
Cash | $ | 45,500 | |||||
Accounts Receivable | 29,700 | ||||||
Land | 114,800 | ||||||
Accounts Payable | 15,700 | ||||||
Notes Payable (due in 2 years) | 34,000 | ||||||
Common Stock | 104,000 | ||||||
Retained Earnings | 36,300 | ||||||
Totals | $ | 190,000 | $ | 190,000 | |||
The following is a summary of the transactions for the year:
1. | January | 12 | Provide services to customers on account, $66,400. | |||
2. | February | 25 | Provide services to customers for cash, $77,300. | |||
3. | March | 19 | Collect on accounts receivable, $46,100. | |||
4. | April | 30 | Issue shares of common stock in exchange for $34,000 cash. | |||
5. | June | 16 | Purchase supplies on account, $12,900. | |||
6. | July | 7 | Pay on accounts payable, $11,700. | |||
7. | September | 30 | Pay salaries for employee work in the current year, $68,200. | |||
8. | November | 22 | Pay advertising for the current year, $22,900. | |||
9. | December | 30 | Pay $3,300 cash dividends to stockholders. |
The following information is available for the adjusting entries.
Accrued interest on the notes payable at year-end amounted to $2,900 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $1,900 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $2,700.
9. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
The question is: Record the entry to close the revenue accounts, record the entry to close the expense accounts, and record the entry to close the dividends account. What is the closing entry for these three accounts?
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