Question

cornell timon enterprises had the following accounts and normal balances listed on its december 31 adjusted trial balance: service revenue, $20,400, salaries expense, $7,200, rent expense, $3,000, advertising expense, $2,200, and dividends, $6,300. journalize the closing entries for cornell timon enterprises. (record debits first, then credits. select the explanation on the last line of the journal - entry table.) start by closing revenues.

Explanation:

Step1: Close service revenue

Debit Service Revenue for its balance of $20,400 and credit Income Summary for the same amount. This transfers the revenue to the Income - Summary account.

Date	Accounts and Explanation	Debit	Credit
	Income Summary		$20,400
	(To close service revenue)

Step2: Close expense accounts

Debit Income Summary and credit each expense account for their respective balances.
Salaries Expense:

Date	Accounts and Explanation	Debit	Credit
	Salaries Expense		$7,200
	(To close salaries expense)

Rent Expense:

Date	Accounts and Explanation	Debit	Credit
	Rent Expense		$3,000
	(To close rent expense)

Advertising Expense:

Date	Accounts and Explanation	Debit	Credit
	Advertising Expense		$2,200
	(To close advertising expense)

The total of expenses debited to Income Summary is $7,200 + $3,000+ $2,200=$12,400.

Step3: Close dividends

Debit Retained Earnings and credit Dividends for $6,300.

Date	Accounts and Explanation	Debit	Credit
	Dividends		$6,300
	(To close dividends)

Answer:

The closing entries are as shown above in the journal - entry tables for each step.