On December 31,2017,Purrfect Pets had retained earnings of $267,800 before making its closing entries.During 2017,the company had sales revenue of $168,100 and other revenue of $81,300.The company sold some investments for a total gain of $24,300.The company used supplies (mainly cat food and litter)during the year that cost $87,900.Administrative expenses were $16,400 and wages (paid in cash)were $18,300.Taxes were $13,700 and dividends declared and paid totalled $6,000.
Prepare T-accounts for the income statement accounts,dividends declared and retained earnings at the end of the year before closing.Then,enter the closing journal entries in the T-accounts and compute the ending balances of the T-accounts.

Question

Quizplus · Accepted Answer

The Answer of On December 31,2017,Purrfect Pets had retained earnings of $267,800 before making its closing entries.During 2017,the company had sales revenue of $168,100 and other revenue of $81,300.The company sold some investments for a total gain of $24,300.The company used supplies (mainly cat food and litter)during the year that cost $87,900.Administrative expenses were $16,400 and wages (paid in cash)were $18,300.Taxes were $13,700 and dividends declared and paid totalled $6,000.
Prepare T-accounts for the income statement accounts,dividends declared and retained earnings at the end of the year before closing.Then,enter the closing journal entries in the T-accounts and compute the ending balances of the T-accounts.

On December 31,2017,Purrfect Pets Had Retained Earnings of $267,800 Before