The income statement for the Bonita Pines Golf Club Inc. for the month ended July 31 shows Service Revenue $16,000, Salaries and Wages Expense $8,400, Maintenance and Repairs Expense $2,500, and Income Tax Expense $1,000. The statement of retained earnings shows an opening balance for Retained Earnings of $20,000 and Dividends $1,300. Required:
a. Prepare closing journal entries.
b. What is the ending balance in Retained Earnings?

a. 31-Jul

Dr Service Revenue16,000

Cr Income Summary16,000

31-Jul

Dr Income Summary11,900

Cr Salaries & Wages Expense8,400

Cr Maintenance & Repairs Expense2,500

Cr Income Tax Expense1,000

31-Jul

Dr Income Summary4,100

Cr Retained Earnings4,100

31-Jul

Dr Retained Earnings1,300

Cr Dividends1,300

b. $22,800

Explanation:

a. Preparation of closing journal entries.

31-Jul

Dr Service Revenue16,000

Cr Income Summary16,000

(Being To close revenue account)

31-Jul

Dr Income Summary11,900

(8,400+2,500+1,000)

Cr Salaries & Wages Expense8,400

Cr Maintenance & Repairs Expense2,500

Cr Income Tax Expense1,000

(Being To close expense accounts)

31-Jul

Dr Income Summary4,100

Cr Retained Earnings4,100

(16,000-11,900)

(Being To close net income to Retained earning)

31-Jul

Dr Retained Earnings1,300

Cr Dividends1,300

(Being To close dividends to Retained earning )

b. Calculation fo What is the ending balance in Retained Earnings

Retained Earnings ending balance=$20,000−$1,300+$16,000−$8,400−$2,500−$1,000

Retained Earnings ending balance=$22,800

Therefore Retained Earnings ending balance will be $22,800

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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