Question

-r Practice Question 47 of 52 -/1 View Policies Current Attempt in Progress Crane Consulting has year-end account balances of Sales Revenue $540,400, Interest Revenue $2,400, Salary and Wages Expense $244,400, Rent Expense $130,000, Administrative Expense $63,300, Income Tax Expense $32,800, and Dividends $35,200. Prepare the year-end 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 o for the amounts.) Account Titles and Explanation Debit Credit Sales Revenue Interest Revenue 540400 2400 Income Summary 542800 (To dose revenue account) Income Summary Cost of Goods Sold Administrative Expenses Income Tax Expense (To close expense account) Income Summary Retained Earnings (To cose income summary account) Retained Earnings Dividends

Answer 1

Answer-

Closing entries :

Date	accounts & explanation	debit	credit
	Sales revenue	540,400
	Interest revenue	2,400
	Income summary a/c		542,800
	(To record close of revenue account)
	Income summary a/c	470,500
	Cost of goods sold ($244,400+$130,000)		374,400
	Administrative Expenses		63,300
	Income Tax Expense		32,800
	(To record close of expenses account)
	Income summary a/c ($542,800-$470,500)	72,300
	Retained earnings a/c		72,300
	(To record close of income summary a/c)
	Retained earnings a/c	35,200
	Dividend a/c		35,200
	(To record dividend account)