At the beginning of Year 2, Rex Car Service had the following normal balances in its accounts: The following events apply to Rex Car Service for Year 2. Provided $186,000 of services on account. Incurred $46,800 of operating expenses on account. Collected $141,000 of accounts receivable. Paid $121,000 cash for salaries expense. Paid $32,400 cash as a partial payment on accounts payable. Paid a $11,000 cash dividend to the stockholders. Required: Record these transactions in a general journal. Open T-accounts and post the beginning balances and the preceding transactions to the appropriate accounts. Determine the balance of each account. Show the beginning balances and the transactions in a horizontal statements model. Record the closing entries in the general journal and post them to the T-accounts. What is the amount of net income for the year? What is the amount of change in retained earnings for the year? Is the change in retained earnings different from the amount of net income? If so, why?

Answer rating: 100% (QA)

To record the transactions and determine the balances lets start by setting up the Taccounts for the relevant accounts 1 Cash 2 Accounts Receivable 3 Accounts Payable 4 Service Revenue 5 Operating Exp... View the full answer