With the specific entries given I need to know what I am doing wrong. What to credit with accumulated depreciation, what to do with income statement, and what to credit with retained earnings.
American Laser, Inc., reported the following account balances on January 1 Debit $ 5,00e Credit Accounts Receivable Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Payable Buildings Cash Common Stock, 10,000 shares of $1 par Notes Payable (long-term) Retained Earnings Treasury Stock TOTALS $ 30,00 90,000 2,000 247,000 10,000 10,000 10,000 120,000 $262,000 $262,000 The company entered into the following transactions during the year Jan. 15 Issued 5,000 shares of $1 par common stock for $50,000 cash. Jan. 31 Collected $3,000 from customers on account. Feb. 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Mar. 15 Reissued 2,000 shares of treasury stock for $24,000 cash Aug. 15 Reissued 600 shares of treasury stock for $4,600 cash. Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Oct. 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101 Oct. 3 Wrote off a $2,000 balance due from a customer who went bankrupt. Dec. 29 Recorded $230,000 of service revenue, all of which was collected in cash. Dec. 30 Paid $200,000 cash for this year's wages through December 31. Ignore payroll taxes and payroll deductions. Dec. 31 Calculated $1e,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.) Journal entry worksheet 13 1 6 7 8 9 12 Prepare the closing entry for Dividends. Record the transaction. Note: Enter debits before credits. Credit Date General Journal Debit Dec 31 14,600 etained Earnings 14,600 Cash Record entry Clear entry View general journal Journal entry worksheet 10 13 6 9 7 8 12 Prepare a closing journal entry for the income statement accounts, assuming the events on December 29-31 were the only transactions to affect income statement accounts. Record the transaction. Note: Enter debits before credits. Debit Date General Journal Credit Dec 31 N o Journal Entry Required Record entry Clear entry View general journal Requirement General Ledger > View transaction list Journal entry worksheet 6 7 8 9 Calculated $10,000 of depreciation for the year to be recorded. (Ignore accrual adjustments for interest and income taxes.) Record the transaction. Note: Enter debits before credits. Debit Date General Journal Credit 10,000 Dec 31 epreciation Expense Accounts Receivable 10,000 Record entry View general journal Clear entry
