From the adjusted trial balance for Fabricated Products Company, Inc. given belo

Question

From the adjusted trial balance for Fabricated Products Company, Inc. given below, prepare the necessary closing entries Fabricated Products Company, Inc. Adjusted Trial Balance December 31 DebitCredit Cash Accounts receivable Merchandise invento Office supplies Store equipment $19,400 25,000 26,000 1,900 84,000 cumulated depreciation-store equipment Office equipment $22,000 40,000 cumulated depreciation-office equipment Accounts payable Notes payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Depreciation expense-store equipment Depreciation expense-office equipment Office supplies expense nterest expense 15,000 12,000 40,000 1,000 109,700 28,000 245,000 6,000 16,500 145,000 32,500 11,000 7,500 1,300 otals $444,700 | $444,700

Explanation / Answer

Date

Account Titles & Explanation

Debit

Credit

Dec. 31

Sales

$245000

      Income Summary

$245000

(Closing entry for sales revenue)

Dec. 31

Income Summary

$220400

      Sales discount

$6000

      Sales returns & allowances

$16500

      Cost of goods sold

$145000

      Sales salaries expense

$32500

      Depreciation expense-store equipment

$11000

      Depreciation expense-office equipment

$7500

      Office supplies expense

$1300

      Interest expense

$600

(Closing entry for all expenses)

Dec. 31

Retained earnings

$28000

      Dividends

$28000

(Closing entry for dividends)

Dec. 31

Income Summary

$24600

      Retained earnings

$24600

(Closing entry for transferring balance of income summary to the retained earnings)

Date

Account Titles & Explanation

Debit

Credit

Dec. 31

Sales

$245000

      Income Summary

$245000

(Closing entry for sales revenue)

Dec. 31

Income Summary

$220400

      Sales discount

$6000

      Sales returns & allowances

$16500

      Cost of goods sold

$145000

      Sales salaries expense

$32500

      Depreciation expense-store equipment

$11000

      Depreciation expense-office equipment

$7500

      Office supplies expense

$1300

      Interest expense

$600

(Closing entry for all expenses)

Dec. 31

Retained earnings

$28000

      Dividends

$28000

(Closing entry for dividends)

Dec. 31

Income Summary

$24600

      Retained earnings

$24600

(Closing entry for transferring balance of income summary to the retained earnings)

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