Need to make a closing single journal entry
Wages: $200,000
Service Revenue: $250,000
Supplies Expense: $75,000
Retained Earnings: $525,000
Should it be:
Retained earnings $525,000
Wages $200,000
Service Revenue $250,000
Supplies Expense $75,000
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Need to make a closing single journal entry
Wages: $200,000
Service Revenue: $250,000
Supplies Expense: $75,000
Retained Earnings: $525,000
Should it be:
Retained earnings $525,000
Wages $200,000
Service Revenue $250,000
Supplies Expense $75,000
Dr. Service Revenue 250,000
Dr. Retained Earnings 25,000
Cr. Supplies Expense 75,000
Cr. Wages (Expense) 200,000
Revenues and Expenses get closed to Retained Earnings. Retained Earnings NEVER gets closed.
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