Following Are Selected Accounts and Their Balances for a Company

question 100

Essay

Following are selected accounts and their balances for a company after the adjustments as of May 31,the end of its fiscal year.(All accounts have normal balances.)
$\begin{array}{|l|r|}\hline \text { Retained earnings } & \$ 30,000 \\\hline \text { Dividends } & 6,000 \\\hline \text { Fees earned } & 20,000 \\\hline \text { Salaries expense } & 7,000 \\\hline \text { Insurance expense } & 350 \\\hline \text { Utilities expense } & 75 \\\hline \text { Supplies expense } & 500 \\\hline \text { Supplies } & 400 \\\hline \text { Salaries payable } & 300 \\\hline \text { Depreciation expense } & 425 \\\hline\end{array}$
Prepare all the necessary closing entries for this company.

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Definitions:

Collecting Payment

The process of receiving money owed for goods or services provided.

Mutual Funds

Pooled and repackaged shares of various stocks—as well as other assets like bonds, real estate, and commodities—that allow individual investors to buy smaller stakes in more companies.

Spreading Investment Capital

The strategy of diversifying investments across different assets, industries, or geographic regions to reduce risk.

Exchange-Traded Funds

Trading vehicles that follow different stock indexes, such as the S&P 500.