Asked by Blake Waldman on May 06, 2024
Verified
Identify which of the following accounts should be closed with a debit or a credit to Retained Earnings at the end of the fiscal year. If it is not closed to Retained Earnings, mark as n/a.
1. Utilities Payable
2. Utilities Expense
3. Supplies
4. Supplies Expense
5. Fees Earned
6. Unearned Fees
7. Accounts Receivable
8. Dividends
9. Retained Earnings
10. Accumulated Depreciation-Equipment
11. Depreciation Expense-Equipment
12. Equipment
13. Prepaid Insurance
14. Insurance Expense
Retained Earnings
The portion of a company's profits that is kept or retained rather than distributed to shareholders as dividends, typically used for reinvestment.
Accounts Closed
This term refers to the process of clearing the balance of temporary accounts at the end of the accounting period and transferring the balances to permanent accounts.
- Learn and apply the steps for closing entries in the context of the accounting cycle.
Verified Answer
AV
Learning Objectives
- Learn and apply the steps for closing entries in the context of the accounting cycle.