On December 31, 2020, Ditka Inc. had Retained Earnings of $286,800 before its closing entries were prepared and posted. During 2020, the company had service revenue of $187,100 and interest revenue of $90,800. The company used supplies in the amount of $97,400, advertising expenses were $18,300, salaries and wages totaled $21,150, and income tax expense was calculated as $17,500. During the year, the company declared and paid dividends of $7,900. Required: Prepare the closing entries dated December 31, 2020. Prepare T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entries, and then determine the ending balance. Record the entry for closing revenue and expense account. Record the entry for closing dividend account.

On December 31, 2020, Ditka Inc. had Retained Earnings of $286,800 before its closing entries were prepared and posted. During 2020, the company had service revenue of $187,100 and interest revenue of $90,800. The company used supplies in the amount of $97,400, advertising expenses were $18,300, salaries and wages totaled $21,150, and income tax expense was calculated as $17,500. During the year, the company declared and paid dividends of $7,900. Required: Prepare the closing entries dated December 31, 2020. Prepare T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entries, and then determine the ending balance. Record the entry for closing revenue and expense account. Record the entry for closing dividend account.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 10MCQ: Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income...

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Allen Company's 2019 income statement reported total revenues, $860,000 and total expenses (including $41,000 depreciation) of $730,000. The company's accounting records showed the following: accounts receivable-beginning balance, $51,000 and ending balance, $40,900; accounts payable -beginning balance, $23,000 and ending balance, $28,900. Therefore, based only on this information, how much was the 2019 net cash provided by operating activities? Multiple Choice $125,800. $175,200. $187,000. $166,800.
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