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Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778 Exercise 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?
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?
Explanation
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(a)
At the end of each financial year co...
Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
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