Scribd
Upload
67 views1 page

Closing Entries

This document contains the closing entries for a company's revenue, expense, and retained earnings accounts for the fiscal year ended July 31, 2017. The revenue and expense accounts are closed out to an income summary account, which shows a net loss of £3,800 that is then closed out to retained earnings. A dividends payment of £12,000 is also closed out directly to retained earnings. The retained earnings account balance after all closing entries is £4,460.

Uploaded by

Rania Gouja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
67 views1 page

Closing Entries

This document contains the closing entries for a company's revenue, expense, and retained earnings accounts for the fiscal year ended July 31, 2017. The revenue and expense accounts are closed out to an income summary account, which shows a net loss of £3,800 that is then closed out to retained earnings. A dividends payment of £12,000 is also closed out directly to retained earnings. The retained earnings account balance after all closing entries is £4,460.

Uploaded by

Rania Gouja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

E4-7:

(a)
Date Account title and explanation Ref. Debit Credit
Closing entries

July 31, Service Revenue 400 £ 64,000


2017 Rent Revenue 429 6,500
Income summary 350 £ 70,500
(To close Revenue account)

Income summary 350 74,300


Depreciation expense 711 3,700
Salaries and wages expense 726 55,700
Utilities expense 732 14,900
( To close Expense account)

Retained earnings 320 3,800


Income Summary (70500-74300) 350 3,800
(To close net loss to retained earnings)

Retained earnings 320 12,000


Dividends 332 12,000
(To close dividends to retained earnings)

(b)

Retained Earnings
No. 320
3,800 20,260
12,000
4460

You might also like