Preparation of Closing Entries James and Susan Morley recently converted a large turn-of-the-century house into a hotel and incorporated the business as Saginaw Enterprises. Their accountant is inexperienced and has made the following closing entries at the end of Saginaw's first year of operations: Retained Earnings 214,000 Service Revenue 181,000 Accumulated Depreciation 33,000 Depreciation Expense 33,000 Income Taxes Expense 8,200 Utilities Expense 11,100 Wages Expense 66,000 Supplies Expense 31,000 Accounts Payable 4,500 Retained Earnings 153,800 Dividends Declared 3,200 Retained Earnings 3,200 Prepare the correct closing entries. Assume that all necessary accounts are presented above and that the amounts given are correct. If an amount box does not require an entry, leave it blank.
Preparation of Closing Entries James and Susan Morley recently converted a large turn-of-the-century house into a hotel and incorporated the business as Saginaw Enterprises. Their accountant is inexperienced and has made the following closing entries at the end of Saginaw's first year of operations:
Prepare the correct closing entries. Assume that all necessary accounts are presented above and that the amounts given are correct. If an amount box does not require an entry, leave it blank.
A journal entry is a form of accounting entry that is used to report a business transaction in a company's accounting records.
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