Cosing Entries with Net Income er all revenue and expense ac

Cosing Entries with Net Income er all revenue and expense accounts have been closed at the end of the ca year, Income Summary has a debit of $202,00 and s credit of $271,800. At the a credit balance of $314 000, and Dividends has a balance of $26,400 Jounalioe e entries reqined to (1) dese net income or net loss and (2) dlose the Dividends account

Solution

a 1 Income Summary 68900 =271600-202700       Retained earnings 68900 2 Retained earnings 26400      Dividends 26400 b Amount of Retained Earnings = 314000+68900-26400= $356500