Question

JACKSON FINANCIAL PLANNERS Adjusted Trial Balance December 31, 2019 Debit Credit Cash $ 17,400 Accounts Receivable 6,200 Office Supplies 1,800 Land 15,000 Accounts Payable $ 3,200 Deferred Revenue 5,000 Notes Payable (Long-Term) 11,500 Common Stock 10,300 Retained Earnings 7,400 Dividends 2,000 Service Revenue 10,500 Office Supplies Expense 600 Rent Expense 3,000 Insurance Expense 1,900 1900 $ 47,900 $ 47,900 Jackson's closing entries will include a: Multiple Choice debit to Retained Earnings of $5,000. Credit to Retained Earnings of $3,000. Debit to Service Revenue of $10,500. Debit to Office Supplies Expense of $600. None of the above.

Answer 1

Debit to Service Revenue of $10,500.

Step-by-step explanation:

Jackson's closing entries should be:

December 31, 2019

Dr Service revenue 10,500

Cr Income summary 10,500

Dr Income summary 5,500

Cr Office Supplies Expense 600

Cr Rent Expense 3,000

Cr Insurance Expense 1,900

Dr Income summary 5,000

Cr Retained earnings 5,000

Dr Retained earnings 2,000

Cr Dividends 2,000