Question

MR A newconnect.mheducation.com Saved Help Save & Exit Sub American Chip Corporation's reporting year-end is December 31. The following is a partial adjusted trial balance as of December 31. 2021. Debits Credits 100,000 950,000 7,500 Account Title Retained earnings Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Insurance expense 520,000 190,000 35,000 50,000 7,000 8,000 Required: Prepare the necessary closing entries at December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to close the revenue accounts. < Prev 6 of 12 Next >

Answer 1

Solution:

16 17 18 AK УИ 20 21 Credit No. 1 Closing Entries Account title and explanation Sales revenue Interest revenue To Income Summary (To close revenue accounts) 22 23 24 25 26 27 Debit $950,000 $7,500 $957,500 28 $810,000 29 30 31 Income Summary Dr To Cost of Merchandise sold To salaries expense To Rent expense To depreciation expense To Interest Expense To Insurance expense (To close expense accounts) $520,000 $190,000 $35,000 $50,000 $7,000 $8,000 32 33 34 35 1 $147,50 $147,500 36 37 38 39 40 41 Income Summary Dr ($957500 - $810000] To Retained Earnings (To close net income) $147,500 43 44 45 46 47 48 54 55 56 57 61 62 63 64 2) Sheet2 Sheet3 ) Sheet4 Sheet240 ) Sh