Accounting 2

hho9e_e12_19_eip_stud.xls

E12-19


Accounting, 9e
E12-19	Calculating retained earnings
LO 4 [10-15 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
Oulette Publishing Company has the following selected account balances at
June 30, 2012.
	Inventory		$ 112,000	Common stock, no par with $0.50
	Machinery and equipment		108,000	stated value, 900 shares
	Dividends		8,000	authorized and issued		450
	Depreciation expense		9,000	Accumulated depreciation		61,000
	Rent expense		19,000	Salary expense		85,000
	Utilities expense		5,000	Retained earnings, June 30, 2011		114,000
	Cost of goods sold		81,000	Sales revenue		240,000
Requirements
1.	Journalize all required closing entries for the year.
2.	Calculate the balance in Retained earnings at June 30, 2012. Use a T-account to
	show your calculations.
	Test Your Knowledge
E12-19
Req. 1
	Journal
	DATE	ACCOUNTS AND EXPLANATIONS			DEBIT	CREDIT
	June 30	Sales revenue
		Income summary
		Close the revenue accounts
	30	Income summary
		Cost of goods sold
		Depreciation expense
		Rent expense
		Salary expense
		Utilities expense
		Close the expense accounts
	30	Income summary
		Retained earnings
		Close the income summary.
	30	Retained earnings
		Dividends
Req. 2
	Retained earings
			Bal.	114,000
				- 0
			End Bal	114,000

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