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High Step Shoes had annual revenues of $185,000, expenses of $103,700, and dividends of $18,000 during the current year. The retained earnings account before closing had a balance of $297,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:

Respuesta :

Answer and Explanation:

The closing entry after closing the revenue and the expenses account are as follows

Income Summary Dr $81,300

        To retained earning $81,300

(Being the closing of income summary is recorded)

The computation is shown below:

= Annual revenues earned - expenses incurred

= $185,000 - $103,700

= $81,300

All other items which are given is not relevant. Hence ignored it

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