The year-end adjusted trial balance of Aggies Corporation included the following account balances: Retained Earnings, $212,000; Service Revenue, $810,000; Salaries Expense, $372,000; Rent Expense, $132,000; Interest Expense, $67,000; and Dividends, $42,000. Record the necessary closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Retained Earnings, $212,000

At the end, accounts are closed against retained earnings, so no journal entry is needed.

Service Revenue, $810,000

Dr Service revenue 810,000

    Cr Income summary 810,000

Salaries Expense, $372,000

Dr Income summary 372,000

    Cr Salaries expense 372,000

Rent Expense, $132,000

Dr Income summary 132,000

    Cr Rent expense 132,000

Interest Expense, $67,000

Dr Income summary 67,000

    Cr Interest expense 67,000

Dividends, $42,000

Dr Retained earnings 42,000

    Cr Dividends 42,000

To close income accounts (income summary = $810,000 - $372,000 - $132,000 - $67,000 = $239,000 profit)

Dr Income summary 239,000

    Cr Retained earnings 239,000

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