EA3

Accounts Payable No Balance Sheet

Accounts Receivable No Balance Sheet
Cash No Balance Sheet Only Income Statement Accoun
Dividends are not considere
Dividends No Retained Earnings Statement
accumulated earnings. For this r
Fee Earned Revenue Yes Income Statement
statement as an expense. Inste
Insurance Expense Yes Income Statement
Prepaid Insurance No Balance Sheet
Supplies No Balance Sheet

EA4
Service Revenue $ 85,000.00 Service Revenue
Income Summary $ 85,000.00 $ 85,000.00
$ -
Expense Summary $ 67,100.00
Advertising Expense $ 5,600.00 Income Summary
Rent Expense $ 6,000.00 $ 85,000.00
Salaries Expense $ 48,000.00 $ -
Utilities Expense $ 7,500.00

Income Summary $ 85,000.00

Expense Summary $ 67,100.00
Profit / Loss $ 17,900.00

Profit /Loss $ 17,900.00

Dividends $ 4,000.00
Retained Earnings $ 13,900.00
EA5
Fees Earned Revenue $ 90,000.00 Service Revenue
Income Summary $ 90,000.00 $ 90,000.00
$ -
Expense Summary $ 63,300.00
Selling Expense $ 45,000.00 Income Summary
Administrative Expense $ 16,000.00 $ 90,000.00
Miscellaneous Expense $ 2,300.00 $ -

Income Summary $ 90,000.00

Expense Summary $ 63,300.00
Profit / Loss $ 26,700.00

Profit / Loss $ 26,700.00

Dividends $ 6,000.00
Retained Earnings $ 20,700.00

EA6
Sales Revenue $ 194,000.00 Sales Revenue
Income Summary $ 194,000.00 $ 194,000.00
$ -
Expense Summary $ 148,000.00
 Automobile Expense $ 15,500.00 Income Summary
Insurance Expense $ 30,000.00 $ 194,000.00
Salaries Expense $ 96,000.00 $ -
Supplies Expense $ 6,500.00

Income Summary $ 194,000.00

Expense Summary $ 148,000.00
Profit / Loss $ 46,000.00

Profit / Loss $ 46,000.00

Dividends $ 24,000.00
Retained Earnings $ 22,000.00
y Income Statement Accounts are closed to Income Summary Account every year end.
Dividends are not considered an expense, because they are a distribution of a firm's
mulated earnings. For this reason, dividends never appear on an issuing entity's income
ement as an expense. Instead, dividends are treated as a distribution of the equity of a
business.

Service Revenue Advertising Expense Rent Expense Salaries Expense

$ 85,000.00 $ 5,600.00 $ 5,600.00 $ 6,000.00 $ 6,000.00 $ 48,000.00
$ - $ - $ - $ - $ - $ -

Income Summary Expense Summary Profit / Loss Dividends

$ 85,000.00 $ 67,100.00 $ 67,100.00 $ 17,900.00 $ 17,900.00 $ 4,000.00
$ - $ - $ - $ - $ - $ -

Service Revenue Selling Expense Administrative Expense Miscellaneous Expense

$ 90,000.00 $ 45,000.00 $ 45,000.00 $ 16,000.00 $ 16,000.00 $ 2,300.00
$ - $ - $ - $ - $ - $ -

Income Summary Expense Summary Profit / Loss Dividends

$ 90,000.00 $ 63,300.00 $ 63,300.00 $ 26,700.00 $ 26,700.00 $ 6,000.00
$ - $ - $ - $ - $ - $ -

Sales Revenue Automobile Expense Insurance Expense Salaries Expense

$ 194,000.00 $ 15,500.00 $ 15,500.00 $ 30,000.00 $ 30,000.00 $ 96,000.00
$ - $ - $ - $ - $ - $ -
Income Summary Expense Summary Profit / Loss Dividends
$ 194,000.00 $ 148,000.00 $ 148,000.00 $ 46,000.00 $ 46,000.00 $ 24,000.00
$ - $ - $ - $ - $ - $ -
 Salaries Expense Utilities Expense
$ 48,000.00 $ 7,500.00 $ 7,500.00
$ - $ - $ -

Dividends Retained Earning

$ 4,000.00 $ 4,000.00 $ 17,900.00
$ - $ 13,900.00

Miscellaneous Expense
$ 2,300.00
$ -

Dividends Retained Earning

$ 6,000.00 $ 6,000.00 $ 22,000.00
$ - $ 20,700.00
$ 36,700.00

Salaries Expense Supplies Expense

$ 96,000.00 $ 6,500.00 $ 6,500.00
$ - $ - $ -
Dividends Retained Earning
$ 24,000.00 $ 24,000.00 $ 46,000.00
$ - $ 22,000.00