Question

Exercise 5A-8 Presented below is information related to Swifty Co. for the month of January 2017. Beginning inventory Ending inventory Purchases Freight-in Purchase discounts Purchase returns and allowances $28,000 25,000 222,000 6,000 6,000 10,000 Insurance expense Rent expense Salaries and wages expense Sales returns and allowances Sales revenue $13,000 20,000 52,000 14,000 413,000 Prepare the necessary closing entries. (Credit account titles are automatically indented when the amount is not indent manually. If no entry is required, select "No entry for the account titles and enter o for the

Answer 1

Date	General Journal	Debit	Credit
January 31, 2017	Sales revenue	413000
	Inventory (ending)	25000
	Purchase discounts	6000
	Purchase returns and allowances	10000
	Income summary		454000
	(To close revenue and contra expense accounts)
January 31, 2017	Income summary	355000
	Inventory (beginning)		28000
	Purchases		222000
	Freight-in		6000
	Insurance expense		13000
	Rent expense		20000
	Salaries and wages expense		52000
	Sales returns and allowances		14000
	(To close expense and contr revenue accounts)
January 31, 2017	Income summary ($454000 - $355000)	99000
	Retained earnings		99000
	(To close income summary)