Preparation of closing entries and statement of retained

Assignment Help Financial Accounting

Reference no: EM13356541

Preparation of closing entries and statement of retained earnings.

The adjusted trial balance for China Tea Company at December 31, 2009 is presented below:

	Debit	Credit
Cash	110,500
Accounts receivable	40,000
Supplies	5,000
Inventory	25,000
Equipment	300,000
Accumulated depreciation - equipment		125,000
Accounts payable		25,000
Notes payable		30,000
Unearned revenue		4,000
Interest payable		1,000
Capital stock		200,000
Retained Earnings		50,000
Dividends	5,000
Service revenue		400,000
Cost of Goods Sold	180,000
Wage expense	120,000
Depreciation expense	30,000
Rent expense	15,000
Supplies Expense	2,500
Interest expense	2,000	_______
Totals	835,000	835,000

a. Prepare the closing entries for China Tea Company for the year ended December 31, 2009 in proper format (omit explanations). Leave a space between each entry.

b. Prepare a Statement of Retained Earnings for the year ended December 31, 2009 in proper format.

Reference no: EM13356541

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