Answer:
Dr Service revenue 31,000
Cr Income Summary 31,000
Dr Income Summary 22,000
Cr Depreciation expense 4,000
Cr Salaries and wages expense 18,000
Dr Income Summary 9,000
Cr Retained Earnings 9,000
Dr Retained Earnings 12,000
Cr Dividends 12,000
Explanation:
Preparation of necessary closing entries
Dr Service revenue 31,000
Cr Income Summary 31,000
(To close revenue account)
Dr Income Summary 22,000
(18,000+4,000)
Cr Depreciation expense 4,000
Cr Salaries and wages expense 18,000
(To close expense account)
Dr Income Summary 9,000
Cr Retained Earnings 9,000
(31,000-22,000)
(To close net income/loss)
Dr Retained Earnings 12,000
Cr Dividends 12,000
(To close dividends)
