Record the entry to close the revenue accounts

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Question - On January 1, 2021, Red Flash Photography had the following balances: Cash, $22,000; Supplies, $9,000; Land, $70,000; Deferred Revenue, $6,000; Common Stock $60,000; and Retained Earnings, $35,000. During 2021, the company had the following transactions:

1. February 15 Issue additional shares of common stock, $30,000.

2. May 20 Provide services to customers for cash, $45,000, and on account, $40,000.

3. August 31 Pay salaries to employees for work in 2021, $33,000.

4. October 1 Purchase rental space for one year, $22,000.

5. November 17 Purchase supplies on account, $32,000.6. December 30 Pay dividends, $3,000.

The following information is available on December 31, 2021:

1. Employees are owed an additional $5,000 in salaries.

2. Three months of the rental space has expired.

3. Supplies of $6,000 remain on hand.

4. All of the services associated with the beginning deferred revenue have been performed.

Required - Make closing entries.

Record the entry to close the revenue accounts.

Record the entry to close the expense accounts.

Record the entry to close the dividends account.

Reference no: EM132649166

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