Question

Presented below is information related to Crane Corporation for the month of January 2020.

Cost of goods sold		$207,000		Salaries and wages expense		$65,660
Delivery expense		7,550		Sales discounts		8,330
Insurance expense		12,410		Sales returns and allowances		14,230
Rent expense		18,260		Sales revenue		356,900

Prepare the necessary closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Prepare the necessary closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter Ofor the amounts.) No. Date Account Titles and Explanation Debit Credit 1. Jan. 31 (To close revenue accounts) 2. Jan. 31 (To close expense accounts) 3. Jan. 31 (To close net income /(loss))

Answer 1

No	Date	Account	Debit	Credit
1.	Jan. 31	Sales revenue	$356,900	-
		Income summary	-	$356,900
		(To close revenue accounts)
2.	Jan. 31	Income summary	$333,440	-
		Cost of goods sold	-	$207,000
		Delivery expense	-	$7,550
		Insurance expense	-	$12,410
		Rent expense	-	$18,260
		Salaries and wages expense	-	$65,660
		Sales discount	-	$8,330
		Sales return and allowances	-	$14,230
		(To close expense accounts)
3.	Jan. 31	Income summary	$23,460	-
		Retained earnings	-	$23,460
		(To close net income / (loss))