3. It is December 31st, which means it is time for you to close the books on

the year. Refer to the information below and journalize the closing entries for

Brett Kauffman Enterprises:

Brett Kauffman Enterprises

Dividends, $9,000

Service revenue, $24,300

a. A a result, Brett Kauffman Enterprises would Debit dividends payable account by $9,000 and credit cash by $9,000.

b. As a result, Brett Kauffman Enterprises would credit the service revenue account by $24,300 and debit cash by $24,300.

Explanation:

We can first begin by stating the terms dividend and service revenue to better understand the question.

1. Dividend

Dividends payable is a liability that comes into account when the cash dividends are paid to the stockholders.

2. Service revenue

Service revenue is payment for services rendered. It can be in the form of cash or promissory note.

a). Journal entry required at the time of payment of cash dividends:

Account Type Debit Credit

Dividends payable 9,000

Cash 9,000

A a result, Brett Kauffman Enterprises would Debit dividends payable account by $9,000 and credit cash by $9,000.

b). Journal entry required for services rendered for cash:

Account Type Debit Credit

Service revenue 24,300

Cash 24,300

As a result, Brett Kauffman Enterprises would credit the service revenue account by $24,300 and debit cash by $24,300.