Closing Entries; Net Income On March 31, 2018, the balances of the accounts appe
ID: 2559263 • Letter: C
Question
Closing Entries; Net Income
On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as follows:
Accounts Receivable
$170,000
Inventory
980,000
Accumulated Depreciation—Building
$750,000
Notes Payable
250,000
Administrative Expenses
435,000
Office Supplies
20,000
Building
3,500,000
Retained Earnings
1,987,000
Cash
80,000
Salaries Payable
8,000
Common Stock
300,000
Sales
8,245,000
Cost of Goods Sold
5,500,000
Selling Expenses
575,000
Dividends
175,000
Store Supplies
90,000
Interest Expense
15,000
Journalize the closing entries in the order as presented in the chapter.
For a compound transaction, if an amount box does not require an entry, leave it blank.
2018 Mar. 31
Mar. 31
Mar. 31
Mar. 31
Accounts Receivable
$170,000
Inventory
980,000
Accumulated Depreciation—Building
$750,000
Notes Payable
250,000
Administrative Expenses
435,000
Office Supplies
20,000
Building
3,500,000
Retained Earnings
1,987,000
Cash
80,000
Salaries Payable
8,000
Common Stock
300,000
Sales
8,245,000
Cost of Goods Sold
5,500,000
Selling Expenses
575,000
Dividends
175,000
Store Supplies
90,000
Interest Expense
15,000
Explanation / Answer
Answer
Journalize the closing entries:
Date Particulars Dr Cr Mar. 31 Sales revenue $8,245,000 Income summary $8,245,000 (To close revenue account) Income summary $6525000 Administrative Expenses $435000 Cost of Goods Sold $5500000 Interest Expense $15000 Selling Expenses $575000 (To close expense account) Income summary $1812000 Retained Earnings($1987000-$175000) $1812000 (To close income summary account) Retained Earnings $175000 Dividends $175000 (To close dividend account)Related Questions
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