Question

Exercise 3-16

Presented below are selected account balances for Bridgeport Co. as of December 31, 2017.

Inventory 12/31/17		$59,060		Cost of Goods Sold		$223,940
Common Stock		73,580		Selling Expenses		16,304
Retained Earnings		45,560		Administrative Expenses		38,711
Dividends		17,785		Income Tax Expense		29,530
Sales Returns and Allowances		11,768
Sales Discounts		15,210
Sales Revenue		403,540

Prepare closing entries for Bridgeport Co. on December 31, 2017. (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.)

No. Account Titles and Explanation Debit Credit 1. (To close accounts with credit balances) 2. To close accounts with debit balances) 3. (To close net income / (loss)) 4. To close dividends) Click if you would like to Show Work for this question Open Show Work

Answer 1

Answer

--Closing Entries

No	Accounts title	Debit	Credit
1	Sales Revenue	$403,540
	Income Summary		$403,540
	(to close credit balances)
2	Income Summary	$335,463
	Cost of Goods Sold		$223,940
	Sales Discounts		$15,210
	Sales Return & Allowances		$11,768
	Selling Expenses		$16,304
	Administrative expenses		$38,711
	Income tax Expenses		$29,530
	( to close debit balances)
3	Income Summary	$68,077
	Retained Earnings		$68,077
	(to close Net Income)
4	Retained Earnings	$17,785
	Dividends		$17,785
	(to close Dividends)