Problem

On December 31, 2013, the Income Statement section of the worksheet for Thomason Company c...

On December 31, 2013, the Income Statement section of the worksheet for Thomason Company contained the following information. Give the entries that should be made in the general journal to close the revenue, cost of goods sold, expense, and other temporary accounts. Use journal page 16.

INCOME STATEMENT SECTION

 

Debit

Credit

Income Summary

$ 38,600

$ 41,900

Sales

 

254,500

Sales Returns and Allowances

3,900

 

Sales Discounts

2,900

 

Interest Income

 

170

Purchases

134,400

 

Freight In

2,200

 

Purchases Returns and Allowances

 

2,000

Purchases Discounts

 

1,530

Rent Expense

8,500

 

Utilities Expense

2,930

 

Telephone Expense

1,540

 

Salaries Expense

66,100

 

Payroll Taxes Expense

5,270

 

Supplies Expense

1,700

 

Depreciation Expense

2,500

 

Interest Expense

340

 

Totals

$270,880

$300,100

Assume further that the owner of the firm is Bobby Thomason and that the Bobby Thomason, Drawing account had a balance of $26,200 on December 31, 2013.

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