Phillips Company had the following adjusted trial balance:

	Account Titles		Debit			Credit
	Cash		$27,270
	Accounts Receivable		16,260
	Supplies		9,050
	Equipment		37,000
	Accumulated Depreciation					$7,200
	Accounts Payable					4,020
	Deferred Rent Revenue					1,530
	Capital Stock					18,130
	Retained Earnings					24,400
	Dividends		15,700
	Commission Revenue					62,900
	Rent Revenue					7,400
	Depreciation Expense		5,200
	Utilities Expense		9,600
	Supplies Expense		5,500
	Total		$125,580			$125,580

The president of Phillips Company has asked you to close the books (prepare and process the closing entries).

Required:

After the closing process has been completed, answer the following questions:

What is the balance in the Retained Earnings account?		$
What is the balance in the dividends account?		$
During the closing process, what amount was transferred from the income summary account to the Retained Earnings account in the third closing entry (i.e., after revenue and expense accounts have been closed to Income Summary)?

Answer rating: 100% (QA)

There are 4 entries to be posted for closing entries process 1st entry is to close revenue accounts ... View the full answer