Recording Closing Entries Lakeside Inc. reports balances in the following temporary accounts on December 31,...
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Recording Closing Entries Lakeside Inc. reports balances in the following temporary accounts on December 31, 2020. Prepare closing entries as of December 31, 2020. Assume that the company uses the income summary account as a temporary clearing account for revenues, expenses, gains, and losses. Account Dec 31, 2020 Service revenue $200,000 Operating expenses 120,000 Interest revenue 5,000 Interest expense 6,000 Income tax expense 23,700 Dividends 10,000 General Journal Account Name Dr. Cr. 0 Interest Revenue 0 0 To close revenues to income summary: 0 0 0 0 Operating Expenses Interest Expense 0 0 0 0 To close expenses to income summary 0 0 0 0 To close income summary to retained earnings, 0 0 0 0 To close dividends to retained earnings
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