The Following Information Was Taken from the Books of Jefferson

question 76

Essay

The following information was taken from the books of Jefferson Corporation.A partial list of accounts and balances as of December 31,2016 after adjustments have been posted:
Required:
a)Prepare the necessary closing entries in general journal form.
b)Assuming the balance of Retained Earnings prior to closing was $6,400,what is its balance immediately after closing?

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Definitions:

Investment Center Assets

Resources and assets managed within a business segment or division that is responsible for its own revenues, expenses, and investments, allowing for performance measurement.

Service Department Expenses

Costs incurred by the departments that support the production or operation departments but do not directly contribute to the production of goods.

Departmental Income Statements

Financial statements that report the revenues, costs, and income for individual departments within a company.

Investment Center Managers

Personnel responsible for overseeing an investment center, which is a division or unit within an organization judged on its profitability and return on investment.