Closing Entries of an Unprofitable Company Hammerstone Consulting provides risk management services to individuals and to corporate clients. The company closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report: 11eb742a_6b48_2312_a720_739bf94220a6_SM1621_00 The firm's statement of retained earnings indicates that a $37,500 cash dividend was declared and paid in 2015. a. Prepare the necessary closing entries on December 31, 2015. b. If the firm's Retained Earnings account had a $450,000 balance on January 1, 2015, at what amount should Retained Earnings be reported in the firm's balance sheet dated December 31, 2015?

Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

النسخة 17الرقم المعياري الدولي: 978-0078025778

Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

النسخة 17الرقم المعياري الدولي: 978-0078025778

تمرين 11

Closing Entries of an Unprofitable Company
Hammerstone Consulting provides risk management services to individuals and to corporate clients. The company closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report:

The firm's statement of retained earnings indicates that a $37,500 cash dividend was declared and paid in 2015.
a. Prepare the necessary closing entries on December 31, 2015.
b. If the firm's Retained Earnings account had a $450,000 balance on January 1, 2015, at what amount should Retained Earnings be reported in the firm's balance sheet dated December 31, 2015?

التوضيح

موثّق

(a)
At the end of each financial year co...