1. indicate what is wrong with the closing entries listed in the first picture

2.prepare the correct closing entries. assume that all necessary accounts are presented above and that the amounts given are correct.

Preparation of Closing Entries James and Susan Morley recently converted a large turn-of-the-century house into a hotel and incorporated the business as Saginaw Enterprises. Their accountant is inexperienced and has made the following closing entries at the end of Saginaw's first year of operations: Income Summary 205,000 Service Revenue 175,000 33,000 Accumulated Depreciation Depreciation Expense Income Taxes Expense Utilities Expense Wages Expense 30,000 8,200 11,300 66,000 31,000 4,500 Supplies Expense Accounts Payable Income Summary 149.500 58,500 Income Summary Retained Earnings 58,500 Dividends 3.200 Income Summary 3.200 1. Indicate what is wrong with the closing entries above. The input in the box below will not be graded, but may be reviewed and considered by your instructor. Dec. 31 (Close revenue account) (Close expense accounts) (Close Income Summary) Close Dividends