The accounts of Silent Stream Service, Inc., at March 31, 20X6, are listed in alphabetical order. Accounts

The accounts of Silent Stream Service, Inc., at March 31, 20X6, are listed in alphabetical order. 

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Accounts payable .............. Accounts receivable....... Accumulated depreciation- equipment..... ****** Advertising expense......... Cash.... Current portion of note payable................. Depreciation expense Dividends....... Equipment....... Interest expense..... $ 14,800 16,900 7,200 11,200 7,200 500 2,200 30,000 44,000 900 Note payable, long term... Other assets..... Prepaid expenses. Retained earnings, March 31, 20X5 ....... Salary expense........... Salary payable.............. Service revenue. Share capital..... Supplies.......... Supplies expense........... Unearned service revenue... $ 5,900 14,000 5,800 22,500 18,200 2,600 95,600 6,200 3,300 4,500 2,900 Requirements 1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Silent Stream's closing entries at March 31, 20X6. 2. Set up a T-account for Retained Earnings and post to that account. Then compute Silent Stream's net income for 20X6. What is the ending balance of Retained Earnings? 3. Did Retained Earnings increase or decrease during the year? What caused the increase or decrease? Accounts payable .............. Accounts receivable....... Accumulated depreciation- equipment..... ****** Advertising expense......... Cash.... Current portion of note payable................. Depreciation expense Dividends....... Equipment....... Interest expense..... $ 14,800 16,900 7,200 11,200 7,200 500 2,200 30,000 44,000 900 Note payable, long term... Other assets..... Prepaid expenses. Retained earnings, March 31, 20X5 ....... Salary expense........... Salary payable.............. Service revenue. Share capital..... Supplies.......... Supplies expense........... Unearned service revenue... $ 5,900 14,000 5,800 22,500 18,200 2,600 95,600 6,200 3,300 4,500 2,900 Requirements 1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Silent Stream's closing entries at March 31, 20X6. 2. Set up a T-account for Retained Earnings and post to that account. Then compute Silent Stream's net income for 20X6. What is the ending balance of Retained Earnings? 3. Did Retained Earnings increase or decrease during the year? What caused the increase or decrease?

Answer rating: 100% (QA)

The requirements mention that all adjustments have been journalized and posted and we are tasked with making the closing entries at March 31 20X6 for Silent Stream Service Inc Closing entries are made ... View the full answer