Problem
On December 31, 2016, Ditka Inc. had Retained Earnings of $284,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $185,100 and interest revenue of $89,800. The company used supplies in the amount of $96,400, advertising expenses were $18,100, salaries and wages totaled $20,850, and income tax expense was calculated as $17,100. During the year, the company declared and paid dividends of $7,700.
Required:
a. Prepare the closing entries dated December 31, 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1. Record the entry for closing revenue and expense account.
2. Record the entry for closing dividend account.