Question

The ledger of Swifty Company contains the following balances: Retained Earnings $30,000, Dividends $1,000, Service Revenue $49,000, Salaries and Wages Expense $26,000, and Supplies Expense $6,000.

Prepare the closing entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	enter an account title to close revenue account	enter a debit amount	enter a credit amount
	enter an account title to close revenue account	enter a debit amount	enter a credit amount
	(To close revenue account)
Dec. 31	enter an account title to close expense accounts	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts	enter a debit amount	enter a credit amount
	(To close expense accounts)
Dec. 31	enter an account title to close net income or loss	enter a debit amount	enter a credit amount
	enter an account title to close net income or loss	enter a debit amount	enter a credit amount
	(To close net income/ (loss))
Dec. 31	enter an account title to close dividends	enter a debit amount	enter a credit amount
	enter an account title to close dividends	enter a debit amount	enter a credit amount
	(To close dividends)

Answer 1

Solution:

Swifty Company - Journal Entries
Date	Particulars	Debit	Credit
31-Dec	Service revenue Dr	$49,000.00
	To Income summary		$49,000.00
	(To close revenue account)
31-Dec	Income summary Dr	$32,000.00
	To Salaries and wages expense		$26,000.00
	To Supplies Expense		$6,000.00
	(To close expense account)
31-Dec	Income summary Dr	$17,000.00
	To Retained earnings		$17,000.00
	(To close income to retained Earnings)
31-Dec	Retained Earnings Dr	$1,000.00
	To Dividends		$1,000.00
	(To close dividend account)