Question

The company's adjusted trial balance includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Accumulated Depreciation, $25,000; Accounts Payable, $10,000; Retained earnings, $63,500; Dividends, $2,000; Sales, $56,000; Sales Returns and Allowances, $3,000; Sales Discounts, $1,500; Depreciation Expense, $25,000; and Salaries Expense, $23,000. All accounts have normal balances.

Prepare the second closing entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.

Answer 1

Journal

Date	Account title	Debit	Credit
	Income summary	52,500
	Sales Returns and Allowances		3,000
	Sales Discounts		1,500
	Depreciation Expense		25,000
	Salaries Expense		23,000
	(To record closing of expenses and contra sales accounts)

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Answer 2

Date	Account Title	Debit	Credit
Dec.31	Income Summary	$52,500
	Sales returns and allowances		$3,000
	Sales discounts		$1,500
	Depreciation Expense		$25,000
	Salaries Expense		$23,000