Question

nws (similar to) sted trial balance of Armstrong Corporation at December 31 shows that sales revenue for the year was $560,000 and other revenue ld for that same period was $270,000, while other expenses totaled $190,000. The corporation declared and paid dividends of $19,00 of retained earnings before closing entries was $475,000. i Requirements e requirements. are the closing entries for reve y recording the entry to close tions from Accou 1. Prepare the closing entries for revenues, expenses, and dividends for the year. 2. What was net income for the year? 3. What is the ending balance of retained earnings after the closing entries are posted? Print Done se from any list or enter any number in the input fields and then click Check Answer. arts Clear All Final emaining Calculator OK earch

Answer 1

Requirement 1:

Date	Account title and explanation	Debit	Credit
Dec.31	Sales revenue	$560,000
	Other revenue	$43,000
	Income Summary		$603,000
	[To close revenue accounts]
Dec.31	Income Summary	$460,000
	Cost of goods sold		$270,000
	Other expenses		$190,000
	[To close expenses accounts]
Dec.31	Income summary (603,000-460,000)	$143,000
	Retained earnings		$143,000
	[To close income summary account]
Dec.31	Retained earnings	$19,000
	Dividends		$19,000
	[To close dividends account]

Requirement 2:

Income Statement
Revenues:
Sales revenue	$560,000
Other revenue	$43,000
Total revenues		$603,000
Less: Expenses:
Cost of goods sold	$270,000
Other expenses	$190,000
Total expenses		$460,000
Net income		$143,000

Requirement 3:

Statement of retained earnings
Retained earnings, beginning balance	$475,000
Add: Net income	$143,000
(Less): Dividends	($19,000)
Retained earnings, Ending balance	$599,000