Textbook Problem

Closing entries with net loss

Rainbow Services Co. offers its services to individuals desiring to improve their personal images.

After the accounts have been adjusted at August 31, the end of the fiscal year, the following balances were taken from the ledger of Rainbow Services:

Retained Earnings	$2,650,000
Dividends	10,000
Fees Earned	1,050,000
Wages Expense	886,000
Rent Expense	$185,000
Supplies Expense	26,200
Miscellaneous Expense	28,600

Journalize the four entries required to close the accounts.