Answer:
Explanation:
The closing entries for the following accounts are shown below:
1. Service Revenue A/c Dr $31,000
To Income Summary $31,000
(Being revenue account closed)
2. Income summary A/c Dr $22,600
To Wages Expense $17,400
To Rent Expense $5,200
(Being expenses accounts are closed)
3. Income summary A/c Dr $8,400
To Retained earning $8,400
(Being the difference is credited to retained earning)
4. Retained earnings A/c Dr $1,700
To Dividend A/c $1,700
(Being dividend account is closed)
The computation of the retained earning is shown below:
= Total revenues - total expenses
= $31,000 - $22,600
= $8,400
Closing entries are termed as the journal entries that are recorded at the end of the accounting or the financial period or year. It involves the temporary form of income statement and the balance sheet.
The closing entries of all the accounts have been attached below.
The computation of the retained earning is:
= Total revenues - total expenses
= $31,000 - $22,600
= $8,400
To know more about the closing entries and the retained earnings, refer to the link below:
https://brainly.com/question/14298180
