The income statement for Pierre Paul Company for the year ended Decembber 31, 20
ID: 2399131 • Letter: T
Question
The income statement for Pierre Paul Company for the year ended Decembber 31, 2016 is as follows:
Pierre Paul Company
Income Statement
For the Year ended December 31, 2016
Revenues
Sales Revenue $53,000
Interest Revenue $4,000
Total Revenues $57,000
Expenses
Cost of goods sold $30,000
Salaries and wages expense $18,000
Interest Expense $1,500
Total expenses $49,500
Net Income $7,500
Prepare the entries to close the revenue and expense accounts at December 31, 2016. You may omit explanations for the transactions.
Answer:
Revenue:
Expenses:
Explanation / Answer
Solution: Closing entries
Date Accounts Debit Credit (a) Sales Revenue Dr $53,000 Interest Revenue Dr $4,000 To Income Statement $57,000 (b) Income Statement Dr $49,500 To Cost of goods sold $30,000 To Salaries and wages expense $18,000 To Interest Expense $1,500Related Questions
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