Question

Presented below is income statement information of the Schefter Corporation for the year ended December 31, 2021. 11,500 Sales revenue Salaries expense Interest revenue Advertising expense Gain on sale of investments Cost of goods sold Insurance expense Interest expense Income tax expense Depreciation expanse $512,000 B2,800 6,800 9,200 201,600 14,300 3,900 41,000 24,000 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 Dec 31, 2021 Record entry Clear entry View general journal

Answer 1

Journal Entry to Close the Revenue Accounts:

Date General Journal    Debit Credit

Dec. 31, 2021 Sales Revenue A/c Dr    $512,000

   Interest Revenue A/c Dr    $6,800

To Income Summary A/c    $518,800

Journal Entry to Close the Expense Accounts:

Date General Journal Debit Credit

Dec.31, 2021 Income Summary A/c Dr $479,100

To Salaries Expense A/c $82,800

To Advertising Expense A/c $11,500

To Cost of Goods Sold A/c $281,600

To Insurance Expense A/c $14,300

To Interest Expense A/c $3,900

To Income Tax Expense A/c $61,000

To Depreciation Expense A/c $24,000

Journal Entry to Close the Income Summary Account:

Date General Journal Debit Credit

Dec.31, 2021 Income Summary A/c Dr $39,700

To Retained Earnings A/c $39,700