The adjusted trial balance of Quality Office Systems at March 31, 2018, follows:

Requirements

1. Journalize the required closing entries at March 31, 2018.

2. Set up T-accounts for Income Summary; Retained Earnings; and Dividends. Post the closing entries to the T-accounts, and calculate their ending balances.

3. How much was Quality Office’s net income or net loss?

Date

Accounts and Explanation

Debit ($)

Credit ($)

2018

Mar 31

Sales revenue

235,700

Income summary

235,700

(To close the revenue account)

Mar 31

Income summary

151,950

Cost of goods sold

107,550

Selling expense

27,400

Administrative expense

14,200

Interest expense

2,800

(To close the expense accounts)

Mar 31

Income summary (235700-151950)

83,750

Retained earnings

83,750

(To close the income summary account)

Mar 31

Retained earnings

41,500

Dividends

41,500

(To adjust the dividends)

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

2018

2018

Mar 31

Expenses

151,950

Mar 31

Sales revenue

235,700

Retained earnings

83,750

Mar 31

Ending balance

0

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

2018

2018

Mar 31

Dividends

41,500

Mar 31

Opening balance

4,950

Mar 31

Income summary

83,750

Mar 31

Ending balance

47,200

Date

Particulars

Amount ($)

Date

Particulars

Amount ($)

2018

2018

Mar 31

Opening balance

41,500

Mar 31

Retained earnings

41,500

Mar 31

Ending balance

0