On December 31,2016,Ditka Inc.had Retained Earnings of $267,800 before its closing entries were prepared and posted.During 2016,the company had service revenue of $168,100 and interest revenue of $81,300.The company used supplies in the amount of $87,900,advertising expenses were $16,400,salaries and wages totaled $18,300,and income tax expense was calculated as $13,700.During the year,the company declared and paid dividends of $6,000.
Required:
Part a.Prepare the closing entries dated December 31,2016.
Part b.Draw a T-account for the Retained Earnings account.Enter the beginning balance into the T-account,post the closing entries,and then determine the ending balance.

Question

Quizplus · Accepted Answer

The Answer of On December 31,2016,Ditka Inc.had Retained Earnings of $267,800 before its closing entries were prepared and posted.During 2016,the company had service revenue of $168,100 and interest revenue of $81,300.The company used supplies in the amount of $87,900,advertising expenses were $16,400,salaries and wages totaled $18,300,and income tax expense was calculated as $13,700.During the year,the company declared and paid dividends of $6,000.
Required:
Part a.Prepare the closing entries dated December 31,2016.
Part b.Draw a T-account for the Retained Earnings account.Enter the beginning balance into the T-account,post the closing entries,and then determine the ending balance.