Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report.
NOT: retained eranings = net profit, dividends = withdrawal
| FICK PSYCHOLOGICAL SERVICES, INC. | |||||||
| Income Statement | |||||||
| For the year ended December 31, current year | |||||||
| Revenue: | |||||||
| Counseling revenue | $ | 250,000 | |||||
| Expenses: | |||||||
| Advertising expense | $ | 1,900 | |||||
| Salaries expense | 92,000 | ||||||
| Office supplies expense | 1,400 | ||||||
| Utilities expense | 850 | ||||||
| Malpractice insurance expense | 6,000 | ||||||
| Office rent expense | 30,000 | ||||||
| Continuing education expense | 3,550 | ||||||
| Depreciation expense: fixtures | 3,000 | ||||||
| Miscellaneous expense | 6,000 | ||||||
| Income taxes expense | 39,500 | 184,200 | |||||
| Net income | $ | 65,800 | |||||
Fick’s statement of retained earnings indicates that a $8,000 cash dividend was declared and paid during the current year.
a. Prepare the necessary closing entries on December 31 of the current year.
b. If Fick’s Retained earnings account had a $99,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm’s year-end balance sheet dated December 31?
Complete this question by entering your answers in the tabs below.
Prepare the necessary closing entries on December 31 of the current year. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
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If Fick’s Retained earnings account had a $99,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm’s year-end balance sheet dated December 31?
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Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report.
NOT: retained eranings = net profit, dividends = withdrawal
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FICK PSYCHOLOGICAL SERVICES, INC. |
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Income Statement |
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For the year ended December 31, current year |
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Revenue: |
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Counseling revenue |
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$ |
490,000 |
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Expenses: |
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Advertising expense |
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2,300 |
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Salaries expense |
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91,000 |
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Office supplies expense |
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2,500 |
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Utilities expense |
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800 |
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Malpractice insurance expense |
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6,000 |
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Office rent expense |
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25,000 |
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Continuing education expense |
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2,350 |
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Depreciation expense: fixtures |
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4,500 |
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Miscellaneous expense |
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6,000 |
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Income taxes expense |
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39,500 |
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179,950 |
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Net income |
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$ |
310,050 |
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Fick’s statement of retained earnings indicates that a $8,000 cash dividend was declared and paid during the current year.
Complete this question by entering your answers in the tabs below.
Prepare the necessary closing entries on December 31 of the current year. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
1) Record the entry to close the revenue account.
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2) Record the entry to close expense accounts.
3) Record the transfer of Net income/loss.
4) Record the entry to close dividends.
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