From the Following Items in the Income Statement Columns of the Work

question 32

Essay

From the following items in the Income Statement columns of the work sheet of ElKay Corporation at December 31,2010,prepare the closing entries,assuming that a $75 dividend was paid during the period (omit explanations).
$\begin{array} { | l | r | r | } \hline &{ \text { Income Statement } } \\\hline & { \text { Debit } } & { \text { Credit } } \\\hline \text { Service Revenue } & & 1,800 \\\hline \text { Wages Expense } & 1,200 & \\\hline \text { Rent Expense } & 400 & \\\hline \text { Supplies Expense } & 200 & \\\hline \text { Income Taxes Expense } & 100 & \\\hline \text { Depreciation Expense-Building } & 150 & \\\hline & 2,050 & 1,800 \\\text { Net Loss } & & 250 \\\hline & 2,050 & 2,050 \\\hline\end{array}$

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Definitions:

Possession

The state or fact of owning, controlling, or having something in one’s own keeping.

Incidental Damages

These are secondary expenses or losses incurred due to a breach of contract, such as storage or transportation costs.

Rightfully Rejected

This term refers to the lawful refusal of accepting goods or services due to non-compliance with contractual terms.

Inspection

The process of examining and assessing something carefully to ensure it meets specific standards or criteria.