Answer:
Retained Earnings, $212,000
At the end, accounts are closed against retained earnings, so no journal entry is needed.
Service Revenue, $810,000
Dr Service revenue 810,000
Cr Income summary 810,000
Salaries Expense, $372,000
Dr Income summary 372,000
Cr Salaries expense 372,000
Rent Expense, $132,000
Dr Income summary 132,000
Cr Rent expense 132,000
Interest Expense, $67,000
Dr Income summary 67,000
Cr Interest expense 67,000
Dividends, $42,000
Dr Retained earnings 42,000
Cr Dividends 42,000
To close income accounts (income summary = $810,000 - $372,000 - $132,000 - $67,000 = $239,000 profit)
Dr Income summary 239,000
Cr Retained earnings 239,000
