The following is information from Crystal Company\'s adjusted trial balance at D

Question

The following is information from Crystal Company's adjusted trial balance at December 31, 2017: Debit $77,000 102,000 68,000 461,400 Credit Cash Notes receivable Merchandise inventory Equipment Accumulated depreciation- equipment Unearned revenue Notes payable L. Crystal, capital L. Crystal, drawings Interest revenue Rent revenue Sales Advertising expense Cost of goods sold Depreciation expense Freight out Insurance expense Interest expense Salaries expense Sales discounts Sales returns and allowances $138,420 7,400 218,420 233,000 156,000 11,000 23,000 1,970,000 53,000 850,000 46,140 25,000 15,000 10,300 670,000 9,400 58,000 $2,601,240 $2,601,240

Explanation / Answer

Solution:

Journal Entries - Crystal Company Date Particulars Debit Credit 31-Dec Interest revenue Dr $11,000.00 Rent Revenue Dr $23,000.00 Sales Revenue Dr $1,970,000.00            To Income Summary $2,004,000.00 (To close income statement account with credit balances) 31-Dec Income Summary Dr $1,736,840.00            To Advertising Expense $53,000.00            To Cost of goods sold $850,000.00            To Depreciation Expense $46,140.00            To Freight Out $25,000.00            To Insurance Expense $15,000.00            To Interest Expense $10,300.00            To Salaries Expense $670,000.00            To Sales discount $9,400.00            To Sales return and allowances $58,000.00 (To close income statement account with debit balances) 31-Dec Income Summary Dr $267,160.00            To L. Crystal Capital $267,160.00 (To close income summary) 31-Dec L. Crystal Capital Dr $156,000.00            To L. Crystal Drawings $156,000.00 (To close drawing account)

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