Exercise 420 Date Account Titles and Explanation Debit Credi

Exercise 4-20

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

Dec. 31

Dec. 31

Dec. 31

SHOW LIST OF ACCOUNTS

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Retained Earnings

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SHOW LIST OF ACCOUNTS

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Exercise 4-20 Selected year-end account balances from the adjusted trial balance as of December 31, 2017, for Flint Corporation is provided below. Debit Credit Accounts Receivable $71,150 Dividends 25,770 Depreciation Expense 12,940 Equipment 208,540 Salaries and Wages Expense 89,280 Accounts Payable $51,940 Accumulated Depreciation—Equipment 112,500 Unearned Rent Revenue 22,440 Service Revenue 180,120 Rent Revenue 6,080 Rent Expense 3,530 Retained Earnings 60,560 Supplies Expense 1,370

Solution

Journal Entry Date Particulars Dr. Amt. Cr. Amt 31-Dec Service Revenue    180,120.00 Rent Revenue        6,080.00 Income Summary    186,200.00 (To close revenue account) 31-Dec Income Summary    107,120.00 Depreciation Expense      12,940.00 Salaries And Wages Expense      89,280.00 Rent Expense        3,530.00 Supplies Expense        1,370.00 (To close expense accounts) 31-Dec Income Summary      79,080.00 Retained Earnings      79,080.00 (To close net income to retained earnings) 31-Dec Retained Earnings      25,770.00 Dividends      25,770.00 (To close dividends to retained earnings) Retained Earnings Beg. Bal      60,560.00 31-Dec    25,770.00      79,080.00 31-Dec End. Bal.    113,870.00 Retained Earnings Statement For the Year Ended Dec 31, 2017 Beginning Balance, Jan 1, 2017      60,560.00 Net Income      79,080.00 Sub-total    139,640.00 Dividends    (25,770.00) Ending Balance, Dec 31, 2017    113,870.00