Question

American Chip Corporation's reporting year-end is December 31. The following is a partial adjusted trial balance as of December 31, 2021 Account Title Retained earnings Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Insurance expense Debits Credits 84,000 790,000 5,000 440,000 140,000 19,000 34,000 5,400 6,400 Required: Prepare the necessary closing entries at December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 > Record the entry to close the revenue accounts. Note: Enter debits before credits General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general journal

Answer 1

1.

Date	General journal	Debit	Credit
Dec 31 2021	sales revenue	790,000
	interest revenue	5,000
	Income summary		795,000

2.

Date	General journal	Debit	credit
Dec 31 2021	Income summary	644,800
	cost of goods sold		440,000
	salaries expense		140,000
	rent expense		19,000
	depreciation expense		34,000
	interest expense		5,400
	insurance expense		6,400

3.

extra

entry to transfer profit will be .

Date	General Journal	Debit	Credit
Dec 31 2021	Income summary	150,200
	Retained earnings		150,200

Amount = total revenues - total expenses =795,000-644,800 =>150,200.