Paradise Gardens Hire Ltds income statement is presented below During the year, directors declared and paid a dividend of $16000 PARADISE GARDENS HIRE LTD Income Statement for the year ended 30 June 2016 INCOME Revenue Hire fees heavy equipment Hire fees light equipment $ 80 670 64 470 EXPENSES Sal...

General Journal Closing Entries Particulars Debit Credit Hire Fees Heavy Equipment 80 670 Hire Fe ...

Paradise Gardens Hire Ltds income statement is presented below. During the year, directors declared and paid a

Question:

Paradise Gardens Hire Ltd’s income statement is presented below. During the year, directors declared and paid a dividend of $16000.

PARADISE GARDENS HIRE LTD Income Statement for the year ended 30 June 2016
INCOME Revenue: Hire fees – heavy equipment Hire fees – light equipment		$ 80 670 64 470
EXPENSES Salaries expense Depreciation expense Insurance expense Repairs and maintenance expense Supplies expense Sundry expenses	$79 300 21 580 6 770 4 090 1 820 1 860	145 140
		115 420
PROFIT		$29 720

Required

Prepare the necessary general journal entries to close the accounts of the company.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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