Question

Valley Company's adjusted trial balance on August 31, 2018, its fiscal year-end, follows. Credit Debit $ 40,900 64,500 $ 25,200 17,440 21,800 8,200 225, 400 Merchandise inventory Other (noninventory) assets Total liabilities Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-office space Office supplies expense Totals 2,290 12,500 73,100 32,700 8,600 1,200 13,500 28,400 3,500 450 $289, 840 $289,840

Answer 1

Closing Entries:

Date	Account Titles and Explanation	Debit	Credit
Aug. 31, 2018	Sales	$225,400
	Income Summary		$225,400
	(To close revenue accounts)
Aug. 31, 2018	Income Summary	$176,240
	Sales discounts		$2,290
	Sales returns and allowances		$12,500
	Cost of Goods Sold		$73,100
	Sales salaries expense		$32,700
	Rent expense - Selling space		$8,600
	Store supplies expense		$1,200
	Advertising expense		$13,500
	Office salaries expense		$28,400
	Rent expense - Office space		$3,500
	Office supplies expense		$450
	(To close expense accounts)
Aug. 31, 2018	Income Summary	$49,160
	Retained Earnings ($225,400 - $176,240)		$49,160
	(To close net income)
Aug. 31, 2018	Retained Earnings	$8,200
	Dividends		$8,200
	(To record the close of dividends)