The income statement for the Kingbird, Inc. for the month ended July 31 shows Service Revenue $19,520, Salaries and Wages Expense $8,620, Maintenance and Repairs Expense $2,920, and Income Tax Expense $1,240. The statement of retained earnings shows an opening balance for Retained Earnings of $24,290 and Dividends $1,600. The income statement for the Kingbird, Inc. for th
(a) Prepare closing journal entries. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit Credit
July 31
Entry field with correct answerService Revenue
Entry field with correct answer19520
Entry field with correct answer
Entry field with correct answerIncome Summary
Entry field with correct answer
Entry field with correct answer19520
(To close revenue account)
July 31
Entry field with correct answerIncome Summary
Entry field with correct answer12780
Entry field with correct answer
Entry field with correct answerMaintenance and Repairs Expense
Entry field with correct answer
Entry field with correct answer2920
Entry field with correct answerIncome Tax Expense
Entry field with correct answer
Entry field with correct answer1240
Entry field with correct answerSalaries and Wages Expense
Entry field with correct answer
Entry field with correct answer8620
(To close expense accounts)
July 31
Entry field with correct answerIncome Summary
Entry field with correct answer6740
Entry field with correct answer
Entry field with correct answerRetained Earnings
Entry field with correct answer
Entry field with correct answer6740
(To close net income/(loss) to retained earnings)
July 31
Entry field with correct answerRetained Earnings
Entry field with correct answer1600
Entry field with correct answer
Entry field with correct answerDividends
Entry field with correct answer
Entry field with correct answer1600
(To close dividends to retained earnings)
(b) What is the ending balance in Retained Earnings?
Ending balance in Retained Earnings $