Prepare the necessary closing entries based on the following selected accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Accumulated Depreciation $10,000 Depreciation Expense 4,000 Retained Earnings 20,000 Dividends 12,000 Salaries and Wages Expense 18,000 Service Revenue 31,000

Dr Service revenue31,000

Cr Income Summary 31,000

Dr Income Summary22,000

Cr Depreciation expense 4,000

Cr Salaries and wages expense18,000

Dr Income Summary9,000

Cr Retained Earnings 9,000

Dr Retained Earnings12,000

Cr Dividends 12,000

Explanation:

Preparation of necessary closing entries

Dr Service revenue31,000

Cr Income Summary 31,000

(To close revenue account)

Dr Income Summary22,000

(18,000+4,000)

Cr Depreciation expense 4,000

Cr Salaries and wages expense 18,000

(To close expense account)

Dr Income Summary9,000

Cr Retained Earnings 9,000

(31,000-22,000)

(To close net income/loss)

Dr Retained Earnings12,000

Cr Dividends 12,000

(To close dividends)

answer; 20% is your answer;