Posting closing entries directly to T-accounts The following balances appear on the books of Cedrick Owens Enterprises: Retained Earnings, $20,600; Dividends, $5,500; Service Revenue, $20,200; Salaries Expense, $6,900; Rent Expense $3,600; Advertising Expense, $2,300. All accounts have normal balances.
1. The T-accounts have been set up for you. Insert each account’s adjusted balance as given (denote as Adj. Bal.) at December 31.
2. Post the closing entries to the accounts, denoting posted amounts as Clos.
3. Compute the ending balance of Retained Earnings.
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