Respuesta :
Answer:
Debit Net Income $520,000
Credit Retained earnings $520,000
Being entries to transfer net income to retained earnings
Explanation:
This will be done by closing entries. Closing entries are journal entries made in a manual accounting system at the end of an accounting period to move the balances in temporary accounts to permanent accounts. The net income account is a temporary account while retained earnings account is the permanent account.
Given
Revenue = $2,100,000
Expenses = $1,380,000
Dividend declared = $200,000
Net income = $2,100,000 - $1,380,000 - $200,000
= $520,000
To journalize the entry to transfer net income to retained earnings for Wedgewood Corporation
Debit Net Income $520,000
Credit Retained earnings $520,000
Being entries to transfer net income to retained earnings
