Question

Question 9 0.9 pts Presented below are selected account balances for Pitchfork, Inc. as of December 31, x1. Using this information, prepare the necessary Closing Entry that is recorded to permanently move Net Income into it's permanent equity account. Debit [Select] , for [Select] Credit [Select] 4, for [Select] Inventory $ 60,000 Cost of Goods Sold $225,700 Common Stock 75,000 Selling Expenses 16,000 Retained Earnings 45,000 Administrative Expenses 38,000 Dividends 18,000 Income Tax Expense 30,000 Sales Returns 12,000 Sales Revenues 410,000 Sales Discounts 15,000 Income Summary

Answer 1

Question : 9

Entry to move net income to permanent equity account:

Date	Account Name	Debit	Credit
Dec 31	Income summary	$ 73,300
	To Retained Earning		$ 73,300

Explanation:

1) Revenue:

= $ 410,000 - $ 12,000 - $ 15000

= $ 383,000

2) Expense :

= $ 225,700 + $ 16,000 + $ 38000 + 30,000

= $ 309,700

3) Net Income :

= $ 383,000 - $ 309,700

= $ 73,300