The following financial information was taken from the books of Zone Health Club, a small spa and
Question:
The following financial information was taken from the books of Zone Health Club, a small spa and fitness club:
Account Balances as of
December 31, 2016
Receivable $26,000
Accounts Payable 7,040
Salaries Payable 10,600
Cash 40,800
Dividends 4,900
Operating Expense 2,690
Prepaid Rent 3,900
Rent Expense 7,200
Retained Earnings 1/1/2016 20,500
Salaries Expense 31,400
Service Revenue 70,100
Supplies 530
Supplies Expense 2,830
Common Stock 21,600
Unearned Revenue 7,350
Land 13,300
Required
a. Prepare the journal entries necessary to close the temporary accounts at December 31, 2016, for Zone Health Club. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
b. What is the balance in the Retained Earnings account after the closing entries are posted?
Expert Answer:
