question archive Fick Psychological Services, Inc

Fick Psychological Services, Inc

Subject:BusinessPrice: Bought3

Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report. $ 290,000 FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Revenue: Counseling revenue Expenses: Advertising expense $ 1,600 Salaries expense 90,000 Office supplies expense 2,300 Utilities expense 950 Malpractice insurance expense 8,000 Office rent expense 20,000 Continuing education expense 2,950 Depreciation expense: fixtures 4,000 Miscellaneous expense 8,000 Income taxes expense 30,000 Net income 167,800 $ 122,200 Fick's statement of retained earnings indicates that a $6,000 cash dividend was declared and paid during the current year. a. Prepare the necessary closing entries on December 31 of the current year. b. If Fick's Retained earnings account had a $92,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31? Complete this question by entering your answers in the tabs below. Required A Required B Prepare the necessary closing entries on December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 > Record the entry to close the revenue account. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal $ 290,000 FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Revenue: Counseling revenue Expenses : Advertising expense $ 1,600 Salaries expense 90,000 Office supplies expense 2,300 Utilities expense 950 Malpractice insurance expense 8,000 Office rent expense 20,000 Continuing education expense 2,950 Depreciation expense: fixtures 4,000 Miscellaneous expense 8,000 Income taxes expense 30,000 Net income 167,800 $ 122,200 Fick's statement of retained earnings indicates that a $6,000 cash dividend was declared and paid during the current year. a. Prepare the necessary closing entries on December 31 of the current year. b. If Fick's Retained earnings account had a $92,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31? Complete this question by entering your answers in the tabs below. Required A Required B If Fick's Retained earnings account had a $92,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31? Retained earnings, December 31, current year

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Related Questions