Question

prepare closing entries as of December 31, 2019.

Company is presented below. The Giant Company Adjusted Trial Balance For the Year Ended December 31, 2019 $15,000 30,000 118,000 90,000 $30,000 56,000 38,000 123,000 36,000 378,000 Cash Accounts receivable Inventory Equipment Accumulated Depreciation Accounts payable Loan payable Eli Manning, capital Eli Manning, withdrawals Sales revenue Sales returns and allowances Sales discounts Cost of goods sold Rent expense Salary expense Insurance expense Utilities expense Depreciation expense Travel & Entertainment expense Interest revenue Interest expense Total 31,000 21,000 129,000 27,000 75,000 19,000 11,000 13,000 15,000 6,000 1,000 $631,000 $631,000 (See next page)

Answer 1

Solution:

Giant Company - Journal Entries
Date	Particulars	Debit	Credit
31-Dec-19	Sales revenue dr	$378,000.00
	Interest revenue Dr	$6,000.00
	To Income summary		$384,000.00
	(To close revenue account)
31-Dec-19	Income summary Dr	$342,000.00
	To Sales returna and allowances		$31,000.00
	To Sales discount		$21,000.00
	To Cost of goods sold		$129,000.00
	To Rent expense		$27,000.00
	To Salary expense		$75,000.00
	To Insurance expense		$19,000.00
	To Utilities expense		$11,000.00
	To Depreciation expense		$13,000.00
	To Travel and entertainment expense		$15,000.00
	To Interest expense		$1,000.00
	(To close expense account)
31-Dec-19	Income summary Dr	$42,000.00
	To Eli Manning capital		$42,000.00
	(To close income to capital)
31-Dec-19	Eli manning capital Dr	$36,000.00
	To Eli Manning Withdrawls		$36,000.00
	(To close withdrawl account)