Question

Exercise 3-16 Presented below are selected account balances for Sunland Co. as of December 31, 2017. Inventory 12/31/17 $59,030 Cost of Goods Sold $224,679 Common Stock 76,110 Selling Expenses 16,230 Retained Earings 45,580 Administrative Expenses 38,719 Dividends 18,337 Income Tax Expense 30,480 Sales Returns and Allowances 11,914 Sales Discounts 15,020 Sales Revenue 417,650 Prepare dosing entries for Sunland Co. on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. entry is required select "No entry for the account tides and enter o for the amounts.) No. Account Titles and Explanation Debit Credit (To close accounts with credit balances)

Answer 1

Date	account and explanation	debit	credit
Dec 31,2017	Sales Revenue	$417,650
	Income summary		$417,650
	(To close revenue account)
Dec 31,2017	Income summary	$337,042
	Sales Returns and Allowances		$11,914
	Sales Discounts		$15,020
	Cost of Goods Sold		$224,679
	Selling Expenses		$16,230
	Administrative Expenses		$38,719
	Income Tax Expense		$30,480
	(To close expense account)
Dec 31,2017	Income summary (417650-337042)	$80,608
	Retained earnings		$80,608
	(To close income summary account)
Dec 31,2017	Retained earnings	$18,337
	Dividend		$18,337
	(To close dividend account)