Undem Scientific provides research consulting services to both university and corporate clients. The company closes its temporary accounts once each year on December 31. It recently issued the following income statement as part of its annual report. UNDEM SCIENTIFIC Income Statement For the Year Ended December 31, 2020 Revenue: Consulting revenue-university clients $ 300,000 Consulting revenue-corporate clients 500,000 $ 800,000 Expenses: Advertising expense $ 44,000 Depreciation expense: computers and diagnostic equipment 152,000 Rent expense 60,000 Office supplies expense 4,000 Travel expense 200,000 Utilities expense 3,000 Telephone and Internet expense 2,000 Salaries expense 360,000 Interest expense 5,000 830,000 Net loss $ (30,000) The firm's statement of retained earnings indicates that a $10,000 cash dividend was declared and paid in the 2020. The firm's Retained Earnings account had a $80,000 balance on January 1, 2020. a. Prepare the necessary closing entries on December 31, 2020 (using the accounts we covered in class). ( b. Prepare a T-account for Retained Earnings to show the December 31, 2020 balance of Retained Earnings.

Undem Scientific provides research consulting services to both university and corporate clients. The company closes its temporary accounts once each year on December 31. It recently issued the following income statement as part of its annual report. UNDEM SCIENTIFIC Income Statement For the Year Ended December 31, 2020 Revenue: Consulting revenue-university clients $ 300,000 Consulting revenue-corporate clients 500,000 $ 800,000 Expenses: Advertising expense $ 44,000 Depreciation expense: computers and diagnostic equipment 152,000 Rent expense 60,000 Office supplies expense 4,000 Travel expense 200,000 Utilities expense 3,000 Telephone and Internet expense 2,000 Salaries expense 360,000 Interest expense 5,000 830,000 Net loss $ (30,000) The firm's statement of retained earnings indicates that a $10,000 cash dividend was declared and paid in the 2020. The firm's Retained Earnings account had a $80,000 balance on January 1, 2020. a. Prepare the necessary closing entries on December 31, 2020 (using the accounts we covered in class). ( b. Prepare a T-account for Retained Earnings to show the December 31, 2020 balance of Retained Earnings.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 9Q

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