Prepare Closing Entries for December from the Following Income Statement

question 37

Essay

Prepare closing entries for December from the following Income Statement columns of the work sheet of Custom Cleaning Service,Inc.,assuming that a $500 dividend was paid during the period (omit explanations).

$\begin{array} { | l | r | r | } \hline & { \text { Income Statement } } \\\hline & { \text { Debit } } &{ \text { Credit } } \\\hline \text { Cleaning Revenue } & & 2,600 \\\hline \text { Wages Expense } & 1,200 & \\\hline \text { Rent Expense } & 400 & \\\hline \text { Supplies Expense } & 300 & \\\hline \text { Income Taxes Expense } & 40 & \\\hline & 1,940 & 2,600 \\\text { Net Income } & 660 & \\\hline & 2,600 & 2,600 \\\hline\end{array}$

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Definitions:

Consumer Market

The marketplace where final goods or services are sold to individuals and households for personal use.

Explosive Growth

Rapid and extensive increase, often used to describe sudden population growth, economic expansion, or the spread of urban development.

Living Wage

A wage sufficient for a worker and their family to live on, covering basic needs such as housing, food, and healthcare, aimed at promoting fair labor practices.

American Standard

Often refers to a set of guidelines or specifications used in the United States for various products, practices, or measurements to ensure quality, safety, and efficiency.