Please use the following taccount balances at the end of the

Please use the following t-account balances at the end of the fiscal year to prepare the closing entries. Equipment Depreciation Expense Prepaid Rent Revenue Retained Earnings Dividends Gains on Sale of Real Estate Wages Expense Accounts Payable Land Unearned Revenue Rent Expense Interest Expense Dividends Payable 1,500 300 400 800 2,000 200 400 500 900 1,300 600 100 50 150

Solution

Closing journal entries Date Account\'s tittle Debit $ Credit $ 1 Depreciation expenses 300 Wages expenses 500 Rent Expenses 100 Interest Expenses 50 Net income ($ 800 + $ 400 - $ 300 - $ 500 - $ 100 - $ 50 ) 250 Revenue 800 Gains on sale of Real Estate 400 ( Entry for net income ) 2 Retained Earnings 200 Dividends 200 ( Dividend paid is adjusted against retained earnings )